EXPM:EGRGF - Post by User
Comment by
BenderRodriguezon Sep 20, 2016 6:32pm
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Post# 25258330
RE:re restrictive convenants
RE:re restrictive convenantsI went back to the press release from May 31, and copied some relevant statements related to the dividend, as a reminder ...
"Although current and forward crude oil prices have recovered from their previous lows, the price forecasts used by the banks remain conservative. However, we anticipate that a sustained rebound in oil price levels will be incorporated into lenders' evaluations as we go forward, thereby providing increased liquidity and flexibility for our company. Our next credit review is in October 2016." - A new covenant was added that restricts Eagle from paying dividends in an amount that exceeds $0.005 (half a cent) per share per month, beginning with any dividend that may be declared in July 2016 (which would be payable in August 2016) and ending with any dividend that may be declared in June 2017 (which would be payable in July 2017). Based on the number of shares currently outstanding, $0.005 (half a cent) per share would equate to a maximum total monthly dividend payment of approximately $212,000.
So we'll be at $0.005 until next summer ...