That current debt overhang though is a definite headwind
With the $900m facility "once again" classified as current - and renegotiations to commence "once again" there is headwinds blowing
At $882.7m drawn on that facility.... That's a chunk ... A small bit of the info from the release that pertains to my comment - there is more of course, so do read it yourself - senior notes in place restrict 'flexibility' is how I would characterize the situation....
Anyway, overall I like what I see - tremendous progress in these past 3 years - tremendous
Cheers folks
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As at December 31, 2022, the amount of available borrowings under the Credit Facility was $17.3 million. In addition, the Company has available a US $50.0 million secured letter of credit facility, of which US $3.6 million was available as of December 31, 2022.
During the fourth quarter of 2021, the Company amended and restated its existing credit agreement with its syndicate lenders, which provides a revolving Credit Facility of $900.0 million. The amendments include an extension to the maturity date of the Credit Facility to the earlier of: (i) six months prior to maturity date of the Senior Notes due April 15, 2024, and (ii) November 25, 2024. No principal payments are due until then. The amended and restated Credit Facility provides the Company with continued access to revolver capacity in a dynamic industry environment.
On June 7, 2022, the Company settled its Convertible Debentures of $37.0 million through the issuance of 21,142,857 common shares of the Company at conversion price of $1.75. The holders' election to convert the Convertible Debentures were made following the issue of notice by the Company.
During the second quarter of 2019, the Company issued US $700.0 million of Senior Notes due 2024 bearing interest at 9.25% per annum. The net proceeds of the Senior Notes offering and cash on hand were used to repay all outstanding amounts under the Company's US $700.0 million senior loan facility, terminating that facility. The Senior Notes may be redeemed by the Company, in whole or in part, at any time on or after April 15, 2021 at a redemption price of 104.625% of the principal amount, after April 15, 2022 at a redemption price of 102.313% of the principal amount; and after April 15, 2023 at 100% of the principal amount, in all cases plus accrued interest up to but excluding the redemption date.
The current capital structure of the Company consisting of the Credit Facility and the Senior Notes, allows the Company to utilize funds flow generated to reduce debt in the near term with greater flexibility than a more non-callable weighted capital structure.
The Company generally may, at any time and from time to time acquire Senior Notes for cancellation by means of open market purchases or negotiated transactions. However, applicable covenants in the Credit Facility limit the Company's ability to make further repurchases of the Senior Notes to $25.0 million, provided that additional Senior Notes may be repurchased for redemption in excess of the $25.0 million limit if certain criteria are met.