GREY:WFREF - Post by User
Comment by
canneon Nov 28, 2015 6:09pm
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Post# 24335328
RE:NEWS connect dots
RE:NEWS connect dots Rouge, u sound like my kid, your vision is to pay down the "non-revolving"credit facility in May 2016 using the entire "revolving" credit facility (even the $40 million in the operating revolving credit) ???? I don't think so.... This is using one credit card to pay another. Did you notice the fees to do that "credit review" -- $3.5 million - that's a month worth of earnings...
I think the most likely scenario is that LRE will try and sell some of its properties to pay a substantial part of the $245 million. We are talking razor edge here.
The boys at Peyto are crowing about how they resisted making aquisitions during the 100 buck a barrel days and saved their money to buy during distressed times - looks like a winning strategy here and now.
The bean counters at Marathon must have something to say about any dispositions as they will have a huge stake in the company by that time. Hard to believe LRE used to sell at over $5, paid a nice dividend and seemed to be well managed not that long ago.