RE:RE:RE:Let's just do the simple math@aokay, I agree with Eigen... The most logical reason would be cash on hand... The company has been generating a lot of it in 2019.
And
Eigen, yeah, I agree with you... I didn't see BTE getting a rate under 7%, but 8.75% was a little bit of a shock to me too... That's why they could have considered an alternative strategy.
Maybe keep some of that cash on hand for the 2022 maturity notes... And reduce the 2027 notes from 500M$ to maybe 350M$.
Keep the 228M$ 2022 notes and start with 75M$ with cash on hand allocated to it. They would have 2 years to come up with the extra 150M$ which should be acheivable with oil's cooperation.
On top of it, maybe if they had reduced the pricipal ammount from 500M$ to 400M$ or 350M$ they might have gotten a better deal on the interest...
Furthermore, I'm not sure that management did a proper job of shopping for a good rate... I mean, it's unclear what work they put into this. But 8.75% sure looks like they got shafted.