Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: A contract that the Teamsters union ratified over the weekend will meet conditions needed to help the company refinance its operations. About $300 million of debt will be converted into equity, and management is looking to refinance $1.4 billion worth of debt and was meeting with lenders to discuss yesterday.
Now what: Bankruptcy appears to be off the table for now and the certainty is giving investors a reason to jump back in. Management expects EBITDA to grow by about $100 million next year to $350 million-$360 million, due primarily to the contract. There's definitely upside for investors if management can execute on its plans but analysts still expect a loss for this year so it's a speculative bet right now.
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