Aug. 13 at 12:15 PM
$STEM 10-Q dropped this morning. The release argued the turnaround. The call argued the guidance. The 10-Q disclosed what neither mentioned:
THE PIK TOGGLE IS DEAD. Note 8: the Jan 1 PIK election added
$4.6M to principal (
$155.4M →
$160.0M) and per the exchange agreement there is NO additional capacity to pay interest in kind. Every future secured-note coupon is CASH at 11%. That's ~
$17.6M/yr on the secured notes alone, ~
$23M+/yr across the stack.
Their own FY adjusted EBITDA guide:
$10-15M.
Cash interest now permanently exceeds PEAK EBITDA. That's not a stressed scenario. That's the base case, per their own filings.
And the receipts are already in: H1 cash paid for interest was
$18.4M — vs
$8.2M of adjusted EBITDA.
More in comments. 🧵
