Callouts & quotes from 291+ activist slides

"Management plans to use all free cash flow after dividends to repurchase stock and will increase leverage to 1.8x Lease Adjusted Net Debt / EBITDAR from 1.6x. We estimate share repurchases will be ~$10bn to $13bn from 2012 to 2015"

"A review of large REITs indicates that these businesses support investment grade ratings with a debt to enterprise value of 36% on average, as compared to Pro Forma McDonald's which would have a debt to enterprise value of 25%."

"In light of GGP’s highly diversified, high quality portfolio, in a reorganization where the unsecured debt converts to equity, the court may deem the Prime rate plus 0% to be a sufficient rate of interest on GGP’s secured debt"

"Pro forma TWC, as shown in Exhibit 3.43, is expected to have total debt of approximately $15.8 billion as of January 1, 2006 or 3.6x net debt/2005E OIBDA (with covenants allowing for maximum leverage of 5.0x total debt/OIBDA)."

"We believe S&P's methodology significantly understates the amount. Our proportional lease adjusted debt calculation as of FY 2014 is €15.6 billion. We estimate that the LTM lease adjusted debt has blown out to €17.7 billion."

"To keep perpetuating its growth story, USCR is growing more and more dependent on larger acquisitions and leverage to fuel its growth. What’s scary is that its current Net Debt / Adj EBITDA of 3.8x exceeds pre-crisis levels."

"The current stock price is so dislocated that the Company should immediately start using a portion of its cash flow to repurchase shares (e.g., 50% with the other 50% for debt paydown) until it reaches its leverage target."

"With cash levels well below what BUR had previously characterized as a “strong” cash position, poor cash realizations, and escalating funding obligations, it is no coincidence that BUR aims to raise even more debt in 2020."

"A plan that sets GGP’s secured debt and unsecured debt to Prime + 0.75% and Prime + 1.50%, respectively, would allow for substantial deleveraging and further increase the probability of a highly successful reorganization"

"We have significant concerns that Axon raised $234m in June 2018, when its balance sheet had $96m of cash, no debt, and it was projecting accelerated revenue growth of 18-20% with healthy earnings projected at over $30m."

"RILY agreed to purchase $1 million in shares at $0.75 cents in an ATM offering underwritten by ... RILY itself. Also, 15% of the ATM proceeds go to repay GREE’s debt to RILY, adding to the circularity of the transaction."

"Economic theory posits that as a firm's weighted average cost of capital rises, the firm's valuation should decline. In a perplexing case, we observe that Stryker's bond holders are selling, driving up its cost of debt."

"The plain meaning is that it is selling the asset, maintains a subordinated security interest, and as "Debtor", its property remains subject to a lien, suggesting its interest in the asset was never fully extinguished."

"We estimate that, assuming management has tolerance for conservative leverage, Amdocs has sufficient debt capacity to grow sales by 2.9% annually over three years via acquisitions even if it records 0% organic growth."

"If the Company had sold midstream before recent market volatility, it could be sitting on net cash proceeds of ~$30 billion (70% current market capitalization) that could be used for debt paydown and stock repurchases"

"If the Company had sold midstream before recent market volatility, it could be sitting on net cash proceeds of ~$30 billion (70% current market capitalization) that could be used for debt paydown and stock repurchases"

"Vivion has booked €958.4 million of net fair value gains on its properties. Presumably the larger asset base enables Vivion to take on more debt – particularly given that it touts its “Net LTV” of 36.0% as of H1 2022."

"A “fair and equitable” plan only entitles creditors to recover 100% of the amount of their claims. When a debtor’s asset value exceeds the amount of its liabilities, equity holders are entitled to the residual value"

"We will vote AGAINST these three directors, who supported the disastrous acquisition of Omni in August 2023, leading to an approximately 80% decline in equity value and the accumulation of extremely burdensome debt."

"Spruce Point believes the Tangible Equity Units (TEUs) should be bifurcated between their debt and equity components. The instruments can be separated by the holders, and settled at any time at the holder's option."

"Going into the current economic correction, BR has limited cash flow available for debt reduction given its growing commitment to paying its dividend - now costing nearly $340 million per year ($2.90/share a year)."

"WTRG's debt has exploded to over $6.8 billion, and it has raised more than $10 billion of total capital. Investment banks make plenty of fees from companies such as WTRG that are highly dependent on raising money."

"As we demonstrate, YT appears to have lied about not owning any direct or indirect ownership of Blitz, because some of the shares in Blitz were used to pay off YT's debt to a large creditor during the bankruptcy."

"Assuming that Olam requires a minimum of S$100 million in cash on hand to continue operating, we believe that Olam may have to raise or refinance S$4.6 billion in debt in the next twelve months to stay solvent."

"TFS claims that the issue of risk is mitigated through the assumption that the value of the plantations (which TFS can reclaim in the event of default) is allegedly greater than the cash value of the debts."

"Stryker's allowance for bad debts, a contra account to accounts receivables, has been steadily growing and is now above 5% of gross receivables - notably larger than close peers Zimmer Biomet and Medtronic"

"We Believe There Is A High Probability Of A Credit Ratings Downgrade Which Is Forcing The Company To Sell Assets And Reevaluate Capital Allocation - Required Debt Reduction Of ~C$1,600m vs. FCF Of ~C$200m"

"As shown below, changing the Company's cost of capital by borrowing at today's ultra-low interest rates and using debt proceeds to repurchase ADT's stock results in a significant increase in equity value"

"HHH will be a well-capitalized company with access to equity and debt capital and excess free cash flow from HHC, which will be reinvested in high-return, controlling investments in operating businesses"

"...InternationalCo would be forced to assume all of Hess' existing debt and therefore restrict InternationalCo's financial flexibility, future growth rate, and ability to return cash to shareholders."

"Content could maintain an investment grade profile with initial leverage of 3.75x total debt/OIBDA (adjusted leverage of 4.1x) and a target leverage ratio of approximately 3.25x - 3.50x 2005PF OIBDA."

"MOXC has only remained technically solvent through debt/equity swaps with related party lenders who were willing to take the stock already knowing MOXC had little-to-no assets to claim in bankruptcy."

"We believe BR’s aggressive capitalization of hundreds of millions of unrecoverable technology conversion costs should be immediately expensed and that it would be in violation of its debt covenant."

"BR paid €2.14 (~$2.58 billion) for Itiviti, placing a 10x multiple on its €210 million of sales and increasing debt by $2.1 billion while pushing its leverage ratio from approximately 1.5x to 3.6x."

"GGP’s liabilities are one of its most valuable assets. Non-recourse debt gives the Company a put option at the mortgage amount on properties worth substantially less than their associated mortgage"

"If FDO raised an incremental $1.5bn of debt, bought back stock at $60, and closed only half the productivity gap, the company would earn ~$5.50 of 2012 EPS and trade in the high $70s at a 14x P/E"

"Management's use of short-term debt has burdened the business with refinancing risk in an environment in which the CDOR rate has risen sharply and is expected to rise for the foreseeable future."

"REITs operating across a wide range of real estate subsectors are currently levered at 6.1x net debt / forward EBITDA on average, with generally higher business cyclicality than CCI in our view"

"In addition, there are two Luxembourg-listed debt instruments arranged by Channel Finance and secured by NMC Healthcare. As seen in the prospectus, this debt is expressly for reverse factoring:"

"The business units of TWX, if separated, should have the ability to manage even more debt (estimated at up to $23 billion) without jeopardizing their ability to secure investment grade ratings."

"In fact, RUN investor relations referred to tax equity as “effectively debt”, which underscores our concern that RUN is, in essence, selling the ITCs or using them as collateral for financing."

"Not only would a partial or full monetization of real estate unlock substantial value, it would also accelerate SIX’s debt paydown, provide cash for buybacks and quicken dividend reinstatement"

"Xylem also presents two sets of balance sheets, with one that cannot possibly balance without debt properly accounted for with short-term liabilities. Assets or equity could also be misstated."

"Avery is expensive relative to its specialty chemical and materials peers, even before our adjustments to its enterprise value for added debts, and normalization of EBITDA and Free Cash Flow."

"GGO will have a strong balance sheet. 100% of GGO's debt is property level and non-recourse. $250mm of balance sheet cash ensures GGO has ample liquidity to fund value creation opportunities"

"I’d especially highlight Puerto Rican debt, which AGO says is rated CCC or CC depending on the issue, even though Puerto Rico defaulted last year and S&P and Moody’s show much lower ratings."

"Canadian Tire's business model is an interconnected web of risk held by Canadian Tire. The model is highly dependent on debt financing and is a much riskier than a traditional Dealer model."

"Proceeds were used to refinance debt including a bridge loan related to our UK acquisition and drawings under our revolving credit facility; some of the proceeds will also be held in cash."

"Verint’s balance sheet, meanwhile – saddled by $650M of net debt at 3x leverage, by our estimates – will likely restrict it from making similarly-sizable investments in cloud capabilities."

"Canadian Tire’s business model is an interconnected web of risk held by Canadian Tire. The model is highly dependent on debt financing and is much riskier than a traditional Dealer model."

"Inconvenient truths are hidden under Directors and hand-waved away to be fixed later - the result is significant technical debt (in my opinion) in the core products while trying to scale."

"The vast majority of HASI's dividends have been financed by returns of capital, not returns on capital - in other words, HASI primarily pays its dividends through equity and debt raises."

"We believe the timeline of these events is not a coincidence and simply the company had to find a way to pay back the debt facility, having to pay it back in full in the next 10 months."

"It appears that CPI PG’s debt for equity swap enabled Vitek to pocket approximately ~€118 million in cash. Meanwhile CPI PG apparently assumed over €220 million of Vitek’s liabilities."

"Nuvei currently has a $14 billion enterprise value. We believe current market data providers fail to adjust its enterprise value for a recent equity raise and other debt adjustments."

"Spruce Point believes FND’s actual debt obligations are $618 million more than is being calculated by analysts and market data providers and its leverage is closer 3.1x and not 2.2x."

"Spruce Point believes FND's actual debt obligations are $618 million more than is being calculated by analysts and market data providers and its leverage is closer 3.1x and not 2.2x."

"The Company despite the reaffirmation of its ratings and despite achieving its target in the 2nd quarter of 2004, continued to pursue debt reduction as its sole financial objective."

"As of Q2'09, CXW's interest coverage ratio was 5.4x. Its next debt maturity is not until 2012. Its cash interest expense is less than 6%, and more than 80% of its debt is fixed rate"

"The only thing that separates Greece from France, Ireland, Italy, Portugal and Spain is that the Greeks openly admit that they can’t repay their debts, while the rest remain silent."