Dedt Covenants/ US Unsecered notes dyod
Great post hemi3tc
Debt will crumble before the class A. We can't find out what Encana operating line Dedt Covenants are, (or it think it's note posted on
https://sedar.com/ Like individuals, credit card debt or unsecurd lines of credit goes into arrears first in times of finacial stress ( unsecured) .Then it secured term loans backed by assets, and then the mortgage,
The Encana balance sheet must have eroded since summer 2015. Per flowing bbl value, imho, must be way down from when they did thr Permian deal. not sure what ratio's the bankers have set, but "loan to value" must be down.
I wonder if the US Unsecured notes are still trading at par or above ( some were 8% USD), or below par. Encana"s free cash flow must be hurting. Wonder what lifting costs are in Permian. Have to just be braking even and, may be dealing with decline rates on production
Dead cat bounce currently??
just some thoughs
GLTA