fauxtomato wrote: The offering + the increased debt covenant should allow them to be able to fund the two major growth projects with retained cashflow + debt, without the need for additional equity. Adds about $8.5M in annual interest costs, plus the initial $5M transaction cost that will be recognized in Q4.
Great to see them get some capital breathing room as TWM prepares for incredible capital spends in 2018 (relative to size that is). Looks like I was proved wrong on my call for an imminent equity raise. Though I expect any further capital announcements will require equity
https://web.tmxmoney.com/article.php?newsid=5899117597973249&qm_symbol=TWM
Senior Unsecured Note Offering
Tidewater Midstream and Infrastructure Ltd. (“Tidewater” or the “Corporation”) (TSX:TWM) is pleased to announce that it has agreed to issue $125 million of 6.75% senior unsecured notes due December 19, 2022 (the “Notes”) by way of private placement (the “Private Placement”). The Notes will be issued at a price of $994.79 per $1,000 principal amount. The Private Placement is expected to close December 19, 2017, subject to the satisfaction of customary closing conditions.
Amendment to Credit Facility
Tidewater has amended its existing credit facility to allow for the Private Placement which includes an amendment to its consolidated debt/EBITDA covenant to 4.5x and the introduction of a consolidated senior debt/EBITDA covenant of 3.5x.