Summary: Southeastern is as well-positioned at Level 3 (LVLT, Financial) as they have ever been. The debt is very conservatively positioned. The growing operating cash and free cash generation more than takes care of any creditor concerns that even the critics had. The tailwind is blowing even stronger today as more people share video on all devices. The company is in a critical and enviable position. They are in discussion with them on how to leverage that correctly. Units are growing nicely. Pricing is stronger than it has ever been and will get even better. At the next meeting they think their thesis will be even better. Their complaints about Level 3 have only been a function of sales and pricing where they thought they were a little bit short. New discipline in the boardroom is helping that and results are positive. Shorts are going to hammer the company though. Will not be a straight line or clean thing PR-wise. They have owner-operators on the board also.
Listen to the complete audio here.
Listen to the complete audio here.
