GREY:LSTMF - Post by User
Post by
bushhog1on Jun 28, 2016 11:51pm
141 Views
Post# 25007251
LTS LOC was cut $900M in one year
LTS LOC was cut $900M in one year
"At March 31, 2015, the Company had a secured extendible revolving credit facility ("credit facility") with a syndicate of lenders in the amount of $1.15 billion and a maturity date of June 2, 2017. The credit facility has covenants with respect to secured and total debt to EBITDA levels adjusted for non-cash items and a total capitalization covenant"
https://www.lightstreamresources.com/files/pdf/investor-relations/2014/Q1_2015_Report.pdf
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In one year their LOC limit dropped $900M because of the EBITDA Ratio.
This Company had no problem in making their Debt payments so far. This recent $300M deep cut on their LOC Limit by only one bank was unexpected and caused
this sudden $120M overdrawn amount
They said they have several options to rectify it, so give them a chance.
Calling for Bankruptcy is premature.
OIL and Canadian Dollar is slowly going back ... be patient.
Remember too that LTS is a well run Company and this LOC Debt was due
till June 2017 but this deep cut was not expected. Their other Debts are due till 2019.
Only my opinion