RE:lenders to amend the three-year term credit facility
JiffBeasauce wrote: so i guess this means they are pushing loan payments for 1 year in exchange gor 1.5 % intrerst raise? They say this is positive showing re asurance of the crediter but is it? Or do they see it as there only posibility of getting payed back? curious on what this says to investers?
It's not unexpected given the bank loan was probably central to the debenture negotiation.
The deferral of the covenants gives us some breathing room so FIRE doesn't breach (accidentally or not) and incur penalties. The 75bp increase in the interest rate is still a rate cut from the beginning of the year since they cut prime by 150bp since March so probably better than budget.
The cutting of the line could be taken either positively or negatively. Positively, because if you don't need it, don't pay for it. Or negatively, in that the bank doesn't want to extend more credit. Both could also be true.
That's my take FWIW.