Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Rooster Energy PRBEQ

"Rooster Energy Ltd is an oil and natural gas exploration and production company which is engaged in the acquisition, development, and exploration of petroleum and natural gas and the delivery of well intervention services. It provides plugging and abandonment services in the Gulf of Mexico. The company operates through Oil and natural gas, and Well services segment."


GREY:PRBEQ - Post by User

Post by westcoast1000on Mar 21, 2016 8:58pm
140 Views
Post# 24686084

clarification on terms

clarification on termsHere are the new loan terms:

The Notes are secured by a first priority security interest, lien and mortgage on all of the assets of the Company. Pursuant to the First Amendment, all of the financial and performance covenants of the credit facility and scheduled loan amortization are waived for the fiscal quarters ending March 31, 2016 and June 30, 2016. The Notes bear interest at a rate equal to Libor + 11.5% per annum with interest payments due monthly; the minimum interest rate will be 13.0% per annum. Additionally, from and after March 9, 2016 until June 30, 2016 interest at the rate of eight percent (8%) per annum shall be payable in kind. 

In other words, the lender (Morrison has waived interest payments on the old agreement until June 30, and replaced them with a reasonable 8% annually until then. After that the rate is about 13.5% . They have about $80 million in long term debt, so the interest for the remainder of the year will be about $5 million. To put things in perspective, they spent $40 million last year on capital investment. 

So, it seems to me Morrison agreed to help the company out with financing at defensible rates, and did not let the company violate the covenants on the debt. That seems proactive and reasonable to me, but what do I know...

Any views out there, other than the semi-hysterical comments of a few days back?
<< Previous
Bullboard Posts
Next >>

USER FEEDBACK SURVEY ×

Be the voice that helps shape the content on site!

At Stockhouse, we’re committed to delivering content that matters to you. Your insights are key in shaping our strategy. Take a few minutes to share your feedback and help influence what you see on our site!

The Market Online in partnership with Stockhouse