RE:RE:Hedgie: Even Suroco had a credit lineA company generating close to 150 mil cash flow and with cash net of debt of 32 mil doesn't need a loan shark. Many oil companies are borrowing 2X - 3X cash flow. Even taking into account some geopolitical risk (which hasn't stopped Parex and others from borrowing), PTA can easily refi the debt at a lower rate than what they are currently paying. Of course they could always just pay off all or most of the debt from their cash balances if they chose to do that.
Even if they paid 10% to refi the full 32 mil of debt (I'm expecting a much lower rate) it wouldn't matter. That's still only 3.2 mil in interest a year as compared to 150 mil in cash flow. The interest cost is just not going to be material. It's a lousy short argument.