tag:blogger.com,1999:blog-4936584745769131524.post8895185343498583401..comments2023-03-26T00:18:37.805-04:00Comments on aShortChronicle: Possible good news on the horizon for Mi-Connection?Rick Shorthttp://www.blogger.com/profile/15157326884806088327noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4936584745769131524.post-32386037391043086062015-03-16T10:37:19.716-04:002015-03-16T10:37:19.716-04:00I have not researched the following numbers , but ...I have not researched the following numbers , but I think here's a logical MI Connection solution<br /><br />Dave Auger at the last public meeting said that MI's financial goal is to get to an EBITDA of 29. I assume that's what's needed to get a sale offer in the $60M to $70M range to breakeven on the (I think) current approx $70M Bond and installment debts. I don't remember if he said in what year that goal may be achieved. My gut tells me that's optimistic give the ever increasing competition and movements to "un-plug". In the meantime isn't it possible if not probable that Davidson and Mooresville EACH must continue to contribute $1M to @1.5M/yr to offset annual operating losses (2M - 3M/yr total) ? Therefore, if it takes just 5 years to get to the magic number 29, the towns may be out another $10M to 15M ?<br /><br />So here's my question. What can we get for MI now? If we can get $45M today , perhaps $25M can be refinanced 10yrs @ 3% = $2.8M/yr . If that's possible, does it make sense now to at least have a public dialog , entertaining selling now, fixing our residual financial obligations and finally eliminate future marketability risk? <br /><br />By the way, it was unrealistic 2007 subscriber growth assumptions (just prior to "unexpected" 2008 real estate market crash) that created this albatross, the longer we hold on for a future price, the more probable that a severe market adjustment will bite again.Anonymousnoreply@blogger.com