Issuing debt is a good way to raise capital for fast-growing businesses, as opposed to an equity raise which involves surrendering a stake in your company. Debt, though, requires making regular interest payments and an eventual pay down of the principal. Some companies, such as the ones on our list today, are having a tough time generating enough operating income to even meet its interest expenses.
Caesars Entertainment Corp. (NASDAQ: CZR) – $9.41
Casinos & Gaming
Caesars Entertainment Corporation (Caesars) is a holding and casino-entertainment and hospitality services company. Its facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. Its business operations include Caesars Entertainment Resort Properties; Caesars Growth Partners Casino Properties and Developments; Caesars Interactive Entertainment and Caesars Entertainment Operating Company. In addition to brick and mortar assets, it operates an online gaming business that provides social and mobile offerings.
- Market Cap: $1,818,213,178
- Revenue (LTM, USD): $7,968,613,980
- EBIT (2014): $764,464,400
- Interest Expense (2014): $3,102,006,000
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Cincinnati Bell Inc. (NYSE: CBB) – $3.35
Integrated Telecommunications Services
Cincinnati Bell Inc., along with its consolidated subsidiaries, is a provider of integrated communications solutions in the Greater Cincinnati area. The Company has operations within three segments: Wireline, IT Services and Hardware, and Wireless.
- Market Cap: $940,222,552
- Revenue (LTM, USD): $1,453,417,660
- EBIT (2014): $171,830,220
- Interest Expense (2014): $172,759,660
Sherritt International Corporation (TSX: S) – $1.05
Mining
Sherritt International Corporation (Sherritt) is engaged in the mining and refining of nickel from lateritic ores with operations in Canada, Cuba, and Madagascar. The Company is an independent energy producer in Cuba, with oil and power operations across the island. Sherritt licenses its technologies and provides metallurgical services to mining and refining operations globally. In Cuba, Sherritt has a 50/50 partnership (The Moa Joint Venture) with General Nickel Company S.A (GNC), which annually produces approximately 38,000 tons of nickel plus cobalt.
- Market Cap: $312,721,824
- Revenue (LTM, USD): $387,000,000
- EBIT (2014): $89,000,000
- Interest Expense (2014): $184,300,000
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Civitas Solutions Inc. (NYSE: CIVI) – $24.69
Healthcare Facilities & Services
Civitas Solutions, Inc. (Civitas) is a provider of home-and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. The Company operates in two segments: Human Service, which provides home and community-based human services to adults and children with intellectual and/or developmental disabilities and to youth with emotional, behavioral and/or medically complex challenges; and Post-Acute Specialty Rehabilitation Service (SRS), which provides health care and community-based health and human services to individuals who have suffered acquired brain and/or spinal injuries and other catastrophic injuries and illnesses.
- Market Cap: $1,234,386,923
- Revenue (LTM, USD): $1,601,004,565
- EBIT (2014): $67,473,814
- Interest Expense (2014): $77,643,140
Boralex Inc. (TSX: BLX) – $12.12
Electric Utilities
Boralex Inc. (Boralex) is a Canada-based power producer with a core business dedicated to the development and the operation of renewable energy power stations. The Company is also committed under power development projects, both independently and with Canadian and European partners, to add approximately 228 MW of power. It operates business in four segments: wind, hydroelectric, thermal and solar.
- Market Cap: $588,332,083
- Revenue (LTM, USD): $219,263,000
- EBIT (2014): $48,686,000
- Interest Expense (2014): $58,497,000
