Winn-Dixie, Bi-Lo public stock offering could make company debt more manageable
Matt Cochran, portfolio manager at the wealth advisory firm of LBA Group in Riverside, examined the prospectus after being contacted by the Times-Union. Cochran said he calculates there’s about $1.36 billion in outstanding debt for the company and the move by Southeastern Grocers leaves many questions. “There’s a lot of missing information as far as the number of shares outstanding and the price range. So it’s hard for us to say if it’s a buy, sell or hold type of company,” Cochran said Wednesday. “On the flip side, we do view this as a positive strategy on the part of management.”
Cochran credited the move to go public by Bi-Lo and Winn-Dixie because it could relieve a portion of the debt and the interest payments that go with it. While the move could prove fortuitous for Winn-Dixie and Bi-Lo, Cochran said that, as a stock analyst, he’d advise investors to hold off on purchasing the stock in the early days of going public.
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Source: jacksonville.com
