GREY:BXEFF - Post by User
Comment by
ceremonyon May 07, 2018 9:51pm
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Post# 27994914
RE:RE:RE:RE:RE:RE:RE:RE:RE:Debt Retirement - US $10M vs 7,081,837 Shares
RE:RE:RE:RE:RE:RE:RE:RE:RE:Debt Retirement - US $10M vs 7,081,837 Shareswell here's the thing. nobody here thought that this was the plan. nobody. nobody here (except me) thought that the debt was an "issue" today. you don't swap debt for equity unless you are in DIRE straits with no possible way to pay the debt back with cash flow. So yes lots of folks are saying this is not bad for bxe. But I have to tell you that to even be in this position represents a failure to manage the business through the cycle. it's going to be an out of court restructuring of the balance sheet. and that is because they took on too much debt with no way to pay it back from the business.
Greenday wrote: @ ceremony - I would have preferred that the debt holder retire his convertable debenture at the exercise price of $8.10 per share. When the commons are trading for under $2 it's not a big mystery why he chose not too. However, the retired debt had an 8.5% coupon and BXE could presumabely refinance at an interest rate less than that if they want to.