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Athabasca Oil Corp T.ATH

Alternate Symbol(s):  ATHOF

Athabasca Oil Corporation (AOC) is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. AOC’s segments include Light Oil and Thermal Oil. The Thermal Oil segment includes the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the Athabasca region of Northern Alberta. It also consists of two operating oil sands steam assisted gravity drainage projects and a resource base of exploration areas in the Athabasca region of northeastern Alberta. The Light Oil segment includes its assets, liabilities and operating results for the exploration, development and production of light crude oil and medium crude oil, tight oil and conventional natural gas. Its Light Oil segment consists exclusively of the Duvernay in the Greater Kaybob area with about 155,000 gross acres across Kaybob West, Kaybob North, Kaybob East and Two Creeks.


TSX:ATH - Post by User

Comment by Maxmoeon Jan 07, 2021 4:50am
184 Views
Post# 32240061

RE:RE:RE:RE:RE:RE:RE:bonds trading at 46.00

RE:RE:RE:RE:RE:RE:RE:bonds trading at 46.00The strong $cdn has helped materially over the past year. The debt is $usd denominated so the run in the $C has added at least 5 points to the market price of the bond . And by the way, ATH does not have any other debt outstanding other than the LC facility which has to be 101% covered by deposits at the bank. So the letter of credit facility is like a prepaid credit card.
Maxmoe wrote:

The bonds mature February 2022 which next month will be less than one year. Just the passage of time explains a big part of the change in the price but even at 46 they are priced sub junk. They are pricing in a high probability of insolvency and bankruptcy protection. Which is why I would still buy them because the refinancing is coming sooner rather than later. And I'm still enraged they haven't bought any back even at 50 cents on the dollar. Even $50 million worth, a small portion of the cash on hand, would drive the bonds and the stock up huge. That in turn would greatly improve the terms of the refinancing. Most frustrating is despite repeated requests, management won't comment. K them yourself. It's the number one question they always get!! Have they considered buying back bonds? No comment. Are there covenants that prevent them from even a small buyback? No comment. Are their heads up their arses? Hmph, Hmmpphhh. 

 

 

Maxmoe wrote: Hahaha Chris. For a guy that owns exactly 100 shares of ATH, maybe the problem is the minimum buy for a bond is $1000 face value . Those bonds are my hot button. I called and spoke to my discount brokers at TD and BMO twice each.  Neither would even give me a quote. And Why T F the company didn't buyback the bonds last spring at $18 makes me apoplectic. If you use a real broker, not one of the bank owned discount brokers, try and buy some. Good luck and please post here which broker you used so I can open an account. The bonds don't trade on "the bond desk" they are listed and trade on the Berlin exchange, a second or third tier exchange.  

 

 

Chris007 wrote: Again for TD, when I look at the High Yield section, the offerings are even slimmer

Air Canada
Bombardier
Parkland
Russel Metals
Sherritt
SNC
Transalta

I guess they don't have a very big inventory of junk bonds

Chris007 wrote: Probably not with discount brokers, anyway.

I'm with with TD and the only corporates I can see that are readily available for purchase are the usual investment grade stuff, that are more liquid (RBC, BMO, TD, CIBC, Telus, Bell, Rogers, Enbridge)

Nothing below BBB.





Primetime1 wrote: Is there any practical way for a retail investor to actually buy these bonds? 

 

 

 




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