Athabasca Oil Corp T.ATH

2022 Notes

[Greenday]

ATH's financials show that the 2022 notes carry an early redemption charge of 2.5% so it's almost 100% certain that the debt won't be rolled over before February 24, 2021.


Athabasca may redeem the 2022 Notes at the following specified redemption prices: • February 24, 2020 to February 23, 2021 - 102.5% of principal • February 24, 2021 to maturity - 100% of principal

[Maxmoe]

Omg we are all tired of responding to this. Redemption is a forced action whereby the company forces all bond holders to redeem. And no that won't happen in 4 weeks! Lol. The company can offer, on a purely voluntary basis, to buy back bonds any time they want. Bond holders can take it or not. Or the company can buy the bonds in the market any time they want at any price they want. 

[Greenday]

@ Maxmoe -  Your post isn't quite accurate.  The 2022 bonds are callable bonds which means ATH can redeem them at it's own discretion.  ATH doesn't need permission from the holders of the  bonds to redeem them.  As compensation for an early redemption, the bond holders receive the 2.5% premium on the outstanding principal. The 2.5% premium expires on February

[Maxmoe]

How is what you said different? I said the company can force bond holders. I didn't say they needed permission. This requires the same purchase of all bond holders. It's not optional. As an alternative the company can make an offer to all bond holders at any price they want and the bond holders can choose to accept or not. We are saying the same thing I think. If you knew so much about it,

[Greenday]

@ Maxmoe - You posted...... "Bond holders can take it or not. Or the company can buy the bonds in the market any time they want at any price they want."  That my friend is not accurate. ATH has the right to call its bonds and if ATH exercised that right then the bond holders must surrender them.  It would happen the same way as what happens with a successful takeover bid.

[Maxmoe]

Last time I'm going to try this. The early redemption feature is not the only way the company can buy the bonds back. If the company uses the early redemption feature, yes there is no "option" for bond holders and the company must make the bid for all bonds. Period. Full stop. Now, Stop talking and listen. The company can buy bonds at any time in the open market at any price they

[fellowship]

You both are decribing the same thing only difference is the time of the redemption, this is the reason you do not understand each other.  In Max case he referring to early redemption , in Greenday case he is referring to the period that bonds can be redemed meaning before Feb 2022 or at maturity date. Since the bonds are callable . Do not worry you both are correct . Cheers !

[Eigen337]

This post has been removed in accordance with Community Policy

[Backinblack1000]

This post has been removed in accordance with Community Policy

[DBNORTH]

MEG might be interested in ATH but if that is why Nuttall bought he won't be seeing a 400% increase and we won't either.  So tell us, what are the chances?  I own a lot of Nuttalls favourites - who else is there left to listen to - only he could withstand the pain of being oil positive for the last 10 years.  Wish he'd stop dumping on SGY - I wouldn't mind making a