Comments on: Analysis of Chemtura Corp bonds http://www.notananalyst.com/2010/04/02/analysis-of-chemtura-corp-bonds/ From Chaos Comes Opportunity Mon, 15 Nov 2010 22:59:41 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: michelangelo http://www.notananalyst.com/2010/04/02/analysis-of-chemtura-corp-bonds/comment-page-1/#comment-31 michelangelo Thu, 29 Apr 2010 18:16:03 +0000 http://www.notananalyst.com/?p=1227#comment-31 I have constructed a waterfall analysis with updated info, which I can send you on an e-mail, and I came up with a $2.01 a share with an EV of $2,509 (adding a multiple of 7.7 to $325 EBITDA). This assumes a Dyacetil litigation charge of $300mm. Maybe that's to conservative, but I'd rather be that than aggressive here. What multiple are you using for EBITDA? Thanks I have constructed a waterfall analysis with updated info, which I can send you on an e-mail, and I came up with a $2.01 a share with an EV of $2,509 (adding a multiple of 7.7 to $325 EBITDA). This assumes a Dyacetil litigation charge of $300mm. Maybe that’s to conservative, but I’d rather be that than aggressive here. What multiple are you using for EBITDA?

Thanks

]]> By: ardeus http://www.notananalyst.com/2010/04/02/analysis-of-chemtura-corp-bonds/comment-page-1/#comment-29 ardeus Sat, 24 Apr 2010 03:11:58 +0000 http://www.notananalyst.com/?p=1227#comment-29 I haven't done a whole lot of work on this name yet, but how about the pre-petition equity? It sounds like if you conservatively value this pig at 6x on $285M EBITDA, you are getting significant value for the equity holders. I understand about the "adequate protection" laws and its exclusion to shareholders, but the equity committee may have a strong case here. After deducting all senior claims, I am getting about $675m - $795M equity value. Based on 254.1 million shares outstanding, thats worth about $2.65 - $3.13 a share. I am looking at this incorrectly? Thanks. I haven’t done a whole lot of work on this name yet, but how about the pre-petition equity? It sounds like if you conservatively value this pig at 6x on $285M EBITDA, you are getting significant value for the equity holders.

I understand about the “adequate protection” laws and its exclusion to shareholders, but the equity committee may have a strong case here. After deducting all senior claims, I am getting about $675m – $795M equity value. Based on 254.1 million shares outstanding, thats worth about $2.65 – $3.13 a share.

I am looking at this incorrectly? Thanks.

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