RE:RE:RE:Suncor Is The NORTH STAR For Canadian O&G CREDITWORTHINESS !7 or 8% sounds about right to me. It's where the market is by the way. If suncor is the standard at say 2% rates, which seems stupid low to me, the junk spread to Ath is about 500 bps which is also stupid low spreads. So that's 7%. A 1 or 2% move in rates is peanuts to ATH beside the $5 or $10 move ATH has seen in their oil price. OMG just get this DONE!
Chris007 wrote: Obviously no sane person can expect ATH to refinance at rates comparable to SU...SU debt, even after the oil market tanked last year, was still investment grade...
Interestingly enough, moodys maintains its rating on the new debt at Baa1 for suncor, though market conditions for oil have improved dramatically since last year.
Eigen337 wrote: SAD TO SAY but Athabasca Oil can ONLY get these RE-FINANCING rates in their WET DREAMS !!!
I am NO BOND EXPERT but as a ATH shareholder, I PREDICT/HOPE (???) that ATHABASCA will be able to get US HIGH-YIELD Notes financings (USD) in the 7 to 8 % INTEREST RATE range for a MINIMUM of 5 YEAR Notes ?????!!!?????
This is PURE SPECULATION.
Eigen337