Oct. 8 at 4:04 AM
$OMI I'll bite.
OMI is getting
$375M cash, distribution rights on P&HS, and 5% equity in P&HS. The distribution rights pay OMI 50% of P&HS distributions after an initial
$310M goes to Platinum, capped at
$200M to OMI. Say the NPV of the distribution right is
$100M (same as paying out the
$200M in a bullet payment in 7 years). Platinum owns a number of healthcare assets, so maybe some synergies can help distributions? OMI is getting
$475M between cash and distribution right NPV for 95% of the business =
$500M total price.
OMI RemainCo is doing
$85M a year in adj net income. Interest expense was
$100M a year and they'll pay off
$375M of debt =
$20M of annualized interest expense savings,
$14M after tax. Pro-forma net income would be ~
$100M = ~
$1.25/share.
D&A is in-line with net capex = ~
$100M FCF, ~
$1.25/share ex working cap chgs.
$AHCO is at
$9 and EPS estimates is
$1.25 in 2027. OMI also has that
$100M distribution right NPV. Plenty of margin for error in that OMI math!
