RE:RE:RE:Crew 2020/2021 Drilling and Production HighlightsBeattheOdds,
Right now, Crew bonds trade at about $0.92-0.93 for $1 of face value...or at 9% yield for 3 year bonds.
I see a scenario where the balance sheet and profitability improve, and the bonds trade around par. That would be a good time to refinance. I think if they can lock 5-7 years at 6.5%, they should do it.
I also believe 2/3 of the bond issue is held by 2-3 institutional investors. Hopefully, they will want to continue investing in Crew bonds.
The risk is that inflation spikes later this year and yields move up significantly. However, that scenario would likely mean much higher commodity prices, higher profitability, less risky and corporate yields may not increase as much.