RE:New Surge term debt financing , lower bank debtI think that is very encouraging news for OBE if Surge can get 150M on a 5 year term.
That really is all OBE would need...OBE already has a revolving at 225M after Jan 1 2022 and if they could get 175M on a 5 year term they would be fully done with this.
But with OBE FCF so much potentially in 2022...it would be hard to gauge how much to do on the term.
You can't pay back that 5 year term early....what amount to use.
To early yet.
Not to take away with it as being good news for Surge...never bad news for a company like Surge to get financing certainity....Surge should go up tomorrow on good sentiment on WTI...but OBE revoling actually went up by 35M on bank review...still getting the Dec cut but instead of being 195M on revoling on Jan 1 2022 we are going to be at 225M.
Surge after bank review had their revovling line cut from 210 to 150M.
Surge prob got punished alittle for outspending cf so far in 2021.
OBE 9month FCF is prob why the banks are slowly thawing on the revolving part.
Possible with further financial results that OBE revolving get's increased to 250 -260M next review.
The 5 year term and the amount Surge got is very positive for the sector. Things were so f*ckin bleak with the banks for so long.
pennydredful wrote: may suggest a pattern for other producers such as OBE