Good giant leap forwardThis financing (significant interest rate aside) derisks several things for Poydras moving forward. Many investors (myself included) have had serious concerns over the structure of their debt, and them being susceptible to massive dilution in the future by debenture holders.
Although we know little about the terms of this deal, it looks to give them flexibility on financing future growth, as well as better organizing debt repayment. That interest rate of 1,150 points over LIBOR (US Libor 12 month I assume - 1.4336) is a bit painful, depending on the step down on deleveraging.
The MOST IMPORTANT part of this debt financing however is that it looks like I'll gain part of my dignity back from Teflon as it looks like they won't need to do a PP any time soon. ;)
VeeP