RE:RE:I'm probably all wrongNothing drawn on the credit line but Imagine it packs a pretty good punch right now if they do. They were right to pay it all the way down and best if they do not touch it if they can.
You are right about the senior notes even the 3.5% ones due in 2031 are cheaper than the div right now so buying back shares saves more cash than paying them down.
Cap-ex is fully fundable out of FFO. Even more so if they leave Attachie unitl the one-time portions are payed off this year ($300 mil). The Sunrise expansion will be complete this year and contributing next. That is the time to sanction Attachie and in two years it is complete (or close enough) and the first set of senior notes can be paid (about 450 million I think). IMO
GLTA ARX BULLS
MyHoneyPot wrote: As much as i done like saying this, the dividend paid on the shares is significantly higher than the interest rates they are paying. Their 1.8 billion bankline is undrawn. They are pretty well taking a little more hedging risk.
I think their balance sheet is prestine, they could pur money in the banks and get a better return then what they are paying on that debt.
The cost of the dividends is higher than the cost of the interest on those notes.
ARX is pretty well zero debt, part of that debt is really lease liability for their offices, and stuff like that. Arx really has no debt expect those term notes.
IMHO