Fusa
Oct 1, 2:58 PM
$REAL "Refinancing likely. REAL's 4.25%/8.75% PIK/cash senior secured notes due 2029 become callable at par on October 1 (TODAY)
The principal value of the notes was
$146.9MM as of June 30, 2026. We expect REAL to likely refinance these notes as soon
as practicable, although management was noncommittal as to the structure of any new financing it would undertake to pay
off the 2029 notes." -- BTIG
This might happen with Q3 earnings given the volatility of bond market. Or potentially in 4 months till February report. Cost of capital should go down 5% and up to
$50M should be eliminated from debt. If my numbers are even close, that will save
$10M in interest a year. They will be cash flow positive
$60M next year, so I expect something they can pay down. In 2028 they will pay off the remaining 1% debt ( under
$50M). So in next 2.5 years, expect them to eliminate
$100M in debt min and save
$25M in interest over that period. The rest of their debt will be convertible (and not until 2031).
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