RE:RE:RE:RE:Blue sky ahead!I own shares in a little company called Precision Drilling, they just refinanced the debt to later maturities at similar rates to before which seemed didn't completely make sense but they financed less than what they paid off and it seems they will use their credit lines to pay the rest probably at lower rates and easier to revolve against cash on hand/current assets. Also the devil is in the detail with these bonds (as we recently found out with the consent), the T's &C's matter quite a bit, do we know what they are and is anyone here expert enough to analyse them? My hope is with the earlier consent BBD is setting the stage for a secured revolving credit line to do the same as PD - would save interest both by virtue of lower rates and not having to carry so much cash (this is what GD is doing as well).
Also I hope they will raise some sort of equity or quasi down the road to bring the debt down some more. The share price going up, and exchange rate improving means $1.25 A shares = $1.05 US to raise $1B would cost 950M shares dilution, hypothetical dilution by the end of the year would be a lot less based on higher share price and stronger C$. Even less if they did a convertible debenture.
This stuff doesn't happen overnight but it seems they got this. Not to disparage Di Bert who was in the swamp for 5 years with the crocodiles after him but it seems like Demosky is a duck in water when it comes to these matters.