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  "documentTitle": "FirstGroup plc (FGP)",
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  "authorName": "Sandell Asset Management",
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  "presentationDate": "2014-01-15 00:00:00",
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  "notes": "The slide uses a 'Why repay bonds?' structure to justify a specific capital allocation strategy.",
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      "kind": "callout",
      "text": "High fixed interest rates payments risk incentivising Management to bid uneconomically for short-term cash flow at significant long-term risk to shareholders, especially since Management owns very little stock",
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      "kind": "disclaimer",
      "text": "Source: Company filings, broker research, Sandell estimates. Note: Interest coverage defined as EBITDA less capex / interest expense. FFO defined as estimated net income plus depreciation. Net debt includes capital leases.",
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      "text": "High debt burden creates the wrong incentives for Management: High fixed interest rates risk incentivising Management to bid uneconomically for short-term cash flow at significant long-term risk to shareholders; A right-sized capital structure is crucial",
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      "text": "Why repay bonds? High debt burden creates wrong incentives for Management; Up front costs more than offset by interest savings; Opportune market",
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      "text": "Net Debt / EBITDA: 1.6x",
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      "text": "Current spreads between FirstGroup and Gilt bonds allows for favourable repurchase prices (see slide 51 for details)",
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      "text": "Status Quo Credit Metrics vs Pro Forma Credit Metrics (Net Debt/EBITDA, Interest Coverage, FFO/Net Debt for 2014/2015)",
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      "text": "Interest Savings vs. Make-Whole Premium: Total Debt Retired, Total Cash Spent, Value Leakage, Annual Interest Savings, NPV of Savings",
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      "kind": "title",
      "text": "Step 3: Improve balance sheet of New FirstGroup (cont'd)",
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