GREY:LSTMF - Post by User
Comment by
boarderex86on Jan 05, 2015 2:12pm
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Post# 23286736
RE:800million USD debt is going to kill this!
RE:800million USD debt is going to kill this!
The yield on their debt is not an issue at this point in time. They won't need to raise capital in 2015.
70 cents on the dollar is however, a good reason to cut the dividend and pay down debt while it is cheap. That is a healthy discount for buying it back early. Share buybacks are speclative and will not help the liquidity situation. Buying back the notes will provide a guaranteed return and the cancelled notes would support their ongoing liquidity through the credit facility in a prolonged period with low oil.