Eighty million dollars is a hefty price tag, and that is now one of the biggest questions in the BTL-Speednet debate. Can BTL afford it? The company says the numbers work. BTL expects to pay off the acquisition in just over four years, and Chairman Markhelm Lizarraga says the key lies in eliminating duplicated expenses and turning those savings into stronger cash flow.
Markhelm Lizarraga
Markhelm Lizarraga, Chairman, BTL
“The negotiated sum so far has been eighty million pending final due diligence. That is the price.”
Reporter
“Across how many years.”
Markhelm Lizarraga
“We estimate that it will be paid back over four point two years, the first two years being interest only and the other few years would be at four and a half percent. But calculate that it can be done in four point two years and that has been substantiated by three independent bodies.”
Reporter
“So what happens in the event that BTL is unable to pay this back?”
Markhelm Lizarraga
“We would not be doing it if we thought that there was the slightest chance that through efficiencies in the market place we would not be able to pay it back. The board has a fiduciary responsibility to the company. The management has a fiduciary responsibility to the company, we take that seriously.”
Reporter
“How will these loan notes be paid?”
Markhelm Lizarraga
“It will be paid by the efficiencies that comes from the market space, by using the excess capacity that we have in our system alone.”
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