Bullish
$RAD I just don't see PBM being sold. I personally would like it but new CEO was hired because of her experience in exactly that type of platform. I see large sale/leasebacks with hundreds of millions in one time gains based on what RAD paid for properties decades ago. The money would then retire debt and save a fortune in interest. If they sold the PBM I am 99% sure they would have to pay off the 2023 bonds with $1.738 billion still outstanding. They were issued for sole purpose of buying PBM. You can bet the indentures require taking them out in event of PBM sale. They only pay 6.125% interest so very cheap. However, debt is debt and paydown is good but we would be talking barely $102 million in annual interest savings not $200 million. Now, if they could sale for $2.5B that would be HUGE. I just don't see it. Sale leasebacks would pay down highest debt first and have zero impact on revenues.
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