RE:RE:RE:Athabasca Rating Upgrade RBCYes, they do believe they can roll the debt. I see no reason not to agree. Oil is charging back. The pandemic is finally going to fade. The economy is going to BOOM from the pent up demand. I'm going to hit the road as soon as I can and I'm going to be elbow to elbow at any airport I go through as well. WooHoo! Interest rates are near zero, junk bond spreads are at record lows as the huge stimulus is starved for yield. Etc etc etc. I doubt Ath makes it to summer without a bid. Ath also has a history of churning through board members and management. If this gang can't get it done and soon, someone else will. You know, just imho. Daddy wants another 100 acres with waterfront.
lovehockey wrote: Here you go. They believe the debt will be rolled and that is why they upgraded. I am hoping the interest is half of what RBC is considering at this point.
Nic777 wrote: Target price raised 10 centes to $0.25.
Athabasca currently has US$450 million in outstanding term debt, maturing February 2022. In our minds, this is the most impactful overhang to the stock and requires a near-term solution before investors broadly get more comfortable with the name.
We currently model a refinancing at 12% but note the outcome may differ materially. Leverage to oil pricing remains ahead of peers. Athabasca's business has significant leverage to oil pricing by virtue of its highly fixed cost structure. Based on our updated estimates, a US$10/bbl change in WTI oil pricing results in a 46% change in 2021E CFPS. This compares to the peer group average at 22%
Lou793 wrote: Athabasca Oil Corp: RBC raises rating to "sector perform" from "underperform"