RE:RE:RE:RE:Nice move From the press release - Jan 7, 2020
Debt Repayment Update
Following additional open market repurchases and redemptions of its senior notes in the fourth quarter, Precision’s 2019 debt repayments totaled $205 million, exceeding its recently increased 2019 annual target of $200 million.
To date in 2020, Precision has redeemed $32 million of its 2021 senior notes and reaffirms its 2020 targeted debt reduction range of $100 million to $150 million, which includes the remaining balance of the 2021 senior notes.
Precision has paid down $412 million in debt since the beginning of 2018, exceeding the low end of the 4-year debt reduction target range of $400 million to $600 million, in just over two years. The Company plans to continue reducing debt levels to reach its targeted leverage ratio of below two-times net debt to Adjusted EBITDA.
As of January 7, 2020, the amounts outstanding under Precision’s senior notes are as follows:
- US$66 million – 6.5% senior notes due December 15, 2021
- US$345 million – 7.75% senior notes due December 15, 2023
- US$308 million – 5.25% senior notes due November 15, 2024
- US$370 million – 7.125% senior notes due January 15, 2026
Share Repurchases Update
As of 2019 year-end, Precision has repurchased and cancelled 16.5 million shares for $26 million. These repurchases were funded from cash flow and account for 5.7% of the Company’s available public float. Precision is currently approved to buy back up to 29.2 million shares, representing 10% of its public float, by August 26, 2020.
Liquidity Update
Precision anticipates a reported 2019 year-end cash balance of approximately $75 million and in the fourth quarter completed a one-year extension of its US$500 million revolving credit facility, now maturing November 2023. Excluding letters of credit, the Company’s revolving credit facility remains undrawn, and with the year-end cash balance, Precision has access to over $700 million in liquidity