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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by greatplayon Oct 05, 2016 6:20pm
63 Views
Post# 25314223

RE:RE:RE:Why did they not Draw on Revolver if Liquidity is a Concern?

RE:RE:RE:Why did they not Draw on Revolver if Liquidity is a Concern?Imagine, you have $2000 in bank account and $5000 ($200 MLN) credit line and have annual needs of $5000.
Would you want to pay from account and draw you credit line with high interest? If it's a last resort, definitiley yes.
But if you can go to credit market and get more money, let's say $8,000 ($350MLN) on cheaper interest rate, then why not?

It gives you vote of confidence that creditors still give you money; also cheaper money. All others volchers that were circling around, and expecting you to fail, so they can break your company, will disappear, because they understand, that you cash for the next 2-3 years; and it will help company to put new changes in.
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