GREY:STPJF - Post by User
Comment by
PeakOilBoyon Jan 22, 2013 10:48am
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Post# 20871727
RE: RE: 4iron
RE: RE: 4iron Are you advocating that corporations don't refi debt? You know that average term on corporate debt is 5 years right? You see, sometimes capital markets are more open than not and it's up to the company board and CFO to determine when it would be a good time to refinance debt. When companies wait and don't give themselves time markets can shut down and drive a company into chapter 11. Geez, with all the US fiscal BS on the way it sure seems like a good time to get this refinance done. Also, are you saying that the company should keep bank debt with insanely tight bank debt covenants that were written in the depths of the debt crisis? Covenants that only allow debt to EBITDA of 2.75x by JUNE OF THIS YEAR. I understand why people get mad on these boards, but when you step back and understand people are taking on above average risk equity investments without even knowing the bank covenants you just have to smile and try to educate. The removal of those bank covenants is worth 10x +/-1% interest rate on the new bond.