Bonds Rollover
The Company intends to issue USD 240 million of new bonds (the Bond Issue) to refinance USD 186 million of outstanding existing bonds and finance the acquisition of Marathon's 15% interest in Atrush for a price tag of USD $60 million...Doing the math, USD$60 million is the NPV to acquire Marathon 15% asset comprising of 15.4 Million bbls of gross 2P reserves and 44 million bbls of Gross Contingent Resource worth around USD$400 million. Depending on the new bonds' indentures, there are likely negative and restrictive covenants that could cause SNM to fall into default should things go south in a hurry in the most volatile region of the world. They still might do a 1-new-for- 10-old shares reverse splits which would not require shareholders' approval under the current TSX-V rules unless the consolidation is more than 1-for-10.