Coliseum, owning 12% of the stock, is buying $150M of new shares at a discount. This will help the balance sheet, but debt will still be more than 5X the highest annual cash flow of the last 10 years (it was highly negative last year). It also will extend its debt maturities, buying it time to improve operations and meet order flow. Maturities move mostly to 2026 and it also gets some government money. These moves certainly keep it 'afloat'. But come at a cost of dilution and a full lien on assets (for the debt). Interest charges may increase. "Survivability' increases for sure, but we are looking for more than just survival in a stock. Financial risk still remains high, especially going into a possible recession. The moves make the company better overall, but not in a way to make it buyable, in our view.
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