RE:RE:RE:Great news on debt reduction...They are definitely generating decent cash flow here. however, I read this more of a case of the company taking advantage of the ultra low interest rate environment...rolling over high interest rate debt for new debt issued at substantially lower rates:
Suncor announces today that it has priced an offering of US$ 750 million in aggregate principal amount of senior unsecured notes due on March 4, 2051 (the “2051 US Notes”). The 2051 US Notes will have a coupon of 3.750%. Suncor also announces today that it priced CAD$ 500 million of senior unsecured Series 8 Medium Term Notes due on March 4, 2051 (the “2051 Canadian Notes” and, together with the “2051 US Notes”, the “Notes”). The 2051 Canadian Notes will have a coupon of 3.950%. Both offerings are expected to close on March 4, 2021, subject to customary closing conditions. Neither offering is contingent on the closing of the other offering.
In addition, Suncor announces that it has exercised the early redemption options on its outstanding US$220 million 9.40% senior unsecured notes (the "2021 US Notes") and CAD$750 million 3.10% Medium Term Notes (together with the 2021 US Notes, the "Redeemed 2021 Notes"), both due in 2021. Suncor delivered irrevocable notices of redemption to Computershare Trust Company of Canada and Bank of New York Mellon, as trustees (collectively, the "Trustees"), on February 26, 2021 and March 1, 2021, respectively. Notices of redemption have been sent to the registered holders of the Redeemed 2021 Notes by each of the Trustees. The redemption date of the Redeemed 2021 Notes is March 31, 2021 and the redemption price will be paid in accordance with the indentures governing the Redeemed 2021 Notes. This news release does not constitute a notice of redemption of the Redeemed 2021 Notes. Holders of the Redeemed 2021 Notes should refer to the notice of redemption delivered to the registered holders by the relevant Trustee.
PabloLafortune wrote: If I'm reading the tea leaves correctly, they're basically signalling to the market that they're generating some significant cashflow here in Q1.