Dec. 12 at 4:23 PM
$DXLG a better understanding of the situation:
FBB is zeroing its equity and recapitalizing 264m of debt down to 172m of debt through Oaktree/existing investors injecting a fresh 92m immediately prior to closing. This 92m buys them 55% of the equity, implying the deal is being price off of ~167m in pro-forma equity. The new share count will be ~120m, so the deal is being priced off of a DXLG stock price of ~
$1.40.
The incoming CEO, Jim Fogarty, will be investing
$3M into the deal and own ~1.6% of the PF equity
At
$1.15 there is ~22% upside to the deal price if it closes and maintains its valuation, and ~150% upside if synergies are realized and the valuation holds.
