RE:RE:RE:COVENANT-BASED CREDIT FACILITYThis is what I meant when I said the lenders decide what dividend is paid. The lenders decide much of how VET uses its capital and operates. And this is what I meant when I said it’s never good when the lenders call the shots. Lenders don’t care about shareholders. Lenders care about getting paid as agreed upon.
JMHO. GLTA.
energee wrote: Page 26 of their YE 2019 Financial Staements on their Website....Not much detail but you can read it there.
"The financial covenants include financial measures defined within the revolving credit facility agreement that are not defined under IFRS. These financialmeasures are defined by the revolving credit facility agreement as follows:
•Consolidated total debt: Includes all amounts classified as “Long-term debt” and “Lease obligations” (including the current portion included within"Accounts payable and accrued liabilities" but excluding operating leases as defined under IAS 17) on the balance sheet. •Consolidated total senior debt: Defined as consolidated total debt excluding unsecured and subordinated debt.
•Consolidated EBITDA: Defined as consolidated net earnings before interest, income taxes, depreciation, accretion and certain other non-cash items, adjusted for the impact of the acquisition of a material subsidiary.
•Consolidated total interest expense: Includes all amounts classified as "Interest expense", but excluding interest on operating leases as definedunder IAS 17.
As at December 31, 2019 and 2018, Vermilion was in compliance with the above covenants.'
Obviously, the world has changed since.