MEG Energy Corp T.MEG

BAZOOKA: MEG BUYS & CANCELS $ 105 Million 7.125% 2027 Notes

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from SEDI:

Filed 2024-03-27 13:22   Tx date 2024-03-22	$MEG MEG Energy Corp.	MEG Energy Corp. 1 - Issuer Direct Ownership	Notes 7.125% Senior Notes due 2027 38 - Redemption, retraction, cancellation, repurchase	-$105,000,000 vol	$0
Filed 2024-03-27 13:21   Tx date 2024-03-22	$MEG MEG Energy Corp.	MEG Energy Corp. 1 - Issuer Direct Ownership	Notes 7.125% Senior Notes due 2027 38 - Redemption, retraction, cancellation, repurchase	+$105,000,000 vol	$105,000,000

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- I TOLD YOU that they were STOCKPILING CASH to TAKE OUT a LARGE CHUNK of the 2027 SENIOR UNSECURED NOTES

- it is GETTING MORE and MORE DIFFICULT to BUY the Notes as the NOTES POOL is GETTING SMALLER and MORE CONCENTRATED in STRONG HANDS who LIKE the 7.125% COUPON RATE 

z173

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- that is ~ $ 141+ million in CANADIAN DOLLARS z173

[robert41]

Thx for posting Z ...great news

[ceenalot]

How far away from net debt target  $600 Million is MEG now ?  C

[aegisfang9]

Well they exited 2023 with $730 million US in debt so now $630 million, Not sure if there was any other notes retired in Jan or Feb

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- the USD 105 million 7.125% 2027 Notes on March 22, 2024 WERE THE ONLY NOTES that MEG Energy REPURCHASED and CANCELLED in 2024 - the PREVIOUS Notes REPURCHASED and CANCELLED was on December 22, 2023 in the amount of USD 5,280,000 Notes Debt @ 12/31/2023: 7.125% senior unsecured notes (December 31, 2023 - US$258.2 million; due 2027; 5.875% senior unsecured notes (December 31, 2023 - US$600

[aegisfang9]

Thanks Z So the company just needs to concentrate on retiring those remaining high interest rate 7.125% Notes (US $153.2 million) and we well be THERE. Those 5.875% unsecured notes are not due until 2029 anyway.

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- we will be THERE BEFORE ALL the USD 153.2 million 7.125% 2027 NOTES are REPURCHASED and CANCELLED - the REASON is SIMPLE: - CASH BALANCE on HAND CASH @ 12/31/2023: * C $ 160 million of WHICH USD 102 million was in US DEPOSITS - at the VERY LEAST, MEG will CARRY C $ 100 million on the CASH BALANCE SHEET on 3/31/2024 {which is ~ USD 74 million} - so I 'FORECAST' that MEG will

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- I NEVER UNDERSTOOD WHY the MEG Energy BODs CHOSE the USD 600 million NET DEBT TARGET versus the USD 600 million NET NOTES TARGET - WHY RETURN 100% to shareholders WHEN you STILL have a BALANCE OUTSTANDING on the 7.125% 2027 Senior Unsecured Notes ? - it is WAY BETTER to LIQUIDATE the 2027 Notes and THEN IMPLEMENT the 100% RETURN to SHAREHOLDERS FRAMEWORK - they should ALSO BUMP UP the CASH