Dye & Durham Makes Strides to Improve Debt Profile
By Adriano Marchese
Dye & Durham said Thursday it has increased the portion of its fixed-rate debt and the size of its debt repurchase program.
The Canadian cloud-based software company said it has entered into a 250 million Canadian dollar ($183.9 million) interest-rate swap to manage its exposure to interest rate fluctuations. As a result, 41% of the company's debt is now fixed-rate debt, up from 24% previously.
Dye & Durham shares have been under continuous pressure since the company said it was investing more into mergers and acquisitions in its fourth fiscal-quarter results in September.
Since then, it has made an about-face. In mid-November, Dye & Durham launched a strategic review of its non-core assets with the aim of significantly expediting its plans to reduce its leverage ratio.
It said at the time that it would consider a number of options to generate additional capital to bring down debt levels, including the potential sale of some of its assets, such as the company's financial services business, among others.
On Thursday, Chief Executive Matthew Proud said the review is moving ahead at a good pace, but the company is still taking these important steps to further strengthen its balance sheet.
Additionally, Dye & Durham said that it has increased its substantial issuer bid to buy back up to C$100 million of the aggregate amount of its debentures.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 07, 2023 08:08 ET (13:08 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst
-
How GLP-1 Drugs Like Ozempic Are Boosting Biopharma Stocks