RE:RE:refinancing...Fact of the matter is, there is no way they pay off net debt of $419M (the last I checked) by Feb 2022.
Unless oil goes and stays in the 100s starting today, until february...keep in mind they have 60% production hedged in the $58 until the end of the year.
Otherwise, they would need to sell something big (who knows, not saying its impossible, but not likely either)
Refinancing is the only realistic path forward, regardless of how crappy the terms
Chris007 wrote: How does that work?
Notes expire in Feb 2022...You mean, file for CCAA, and then work the year to pay it off, while under insolvency protection?
Fact of the matter is, they have to refinance, regardless of how shi tty the terms are. If oil prices remain strong into, they can call the notes early and just pay the penalty.
2021Gamble wrote: I've copied the below from the Dec press release. As we 'await', some patiently, and others not so patiently.....
Given other companies have recently renewed their credit facilities at rates HIGHER than the ones that were just expiring....it seems obvious (in a captain obvious sort of way), that the reason it hasn't been renewed yet is the rates they are being offered - well...are really bad.
so....in a truly speculation sort of way....if the rates are not conducive to renewal.....what do you learnned folks think about just paying it off? I mean...if my math is right, they can "just" achieve that amount of cash by end feb 2022...
thoughts on that option? completely eliminate the second lien debt through non renewal?
Financial Position
Ample Liquidity. The Company is well positioned to navigate the current challenging environment with estimated liquidity of approximately $170 million at year-end 2020 (excluding $150.9 million of restricted cash as at September 30, 2020).
Bank Facility Renewal. The Company’s banking syndicate has renewed the reserve-based facility until May 31, 2021. The credit facility remains unchanged at $39.9 million which reflects current outstanding letters of credit for long term transportation commitments and is secured by the Company’s restricted cash balances.
Increased Unsecured Letter of C redit Facility. The Company also increased its unsecured letter of credit facility with ATB Capital Markets by $10 million to $40 million which is supported by a performance security guarantee from Export Development Canada.
Long Term Debt. The Company has US$450 million in second lien debt with a maturity of February 24, 2022. The refinancing of Athabasca’s long term debt remains a key 2021 priority.