TSX:LSG.DB - Post by User
Post by
JRaffleson Jan 10, 2016 6:45am
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Post# 24444256
Debenture repayment planning
Debenture repayment planning
As LSG's sales are priced in US$ and expenses in C$, then it has turned out to be a positive decision by management that the 2012 debentures were both issued and repayable in C$.
Therefore, if the C$ stays weak to Q3 2017, LSG would have benefited from the use of about CS90m in 2012, when the C$ was strong, but have a repayment date when the C$ may be weak.
The ideal scenario for LSG is to time its debenture repayments whilst the C$ is lowest against the US$. However, the pre 2017 redemtion date debenture repayment options are limited.
Management may consider future options to buy C$, at a time when they are at their weakest, in order to repay the debentures in the last Q of 2017.