RE:ATH To OPTIMIZE Balance Sheet With MEG-Like Structure !!!Let hoe they can do what MEG did and other peers have successfully been doing of late.
They have three very restrictive credit facilities that I believe is the monkey wrench in refinancing the Notes.
$120mil Cash collaterilized credit facility - ties us the unrestricted cash. Fortunately ATH got $44 mil released with the Hangingstone transportation deal. Looks like they have $98mil left to try to free up. As you suggest, they need to free up the rest as part of the overall refi
$40mil Unsecured Letter of Credit Facility
$29mil Credit Facility - restricts payments, and disallows the disposal or transfer of assets. I am wondering if this is what is holding back ATH from acquiring the Notes on the open market.
All in all, AOC paid $20mil in Q2 for financing charges which is a rediculously high amount for the size of the Company.
Eigen337 wrote: 'ATTEMPTING' to GET RID of the HORRIBLE RESTRICTED CASH financing SET-UP !!! The Company is planning a wholistic debt refinancing that will utilize cash on hand, a reestablished reserves based credit facility and a lower quantum of new notes. Athabasca will continue with its hedging policy targeting up to 50% of corporate production with an emphasis on securing funds flow to protect its base sustaining capital program.
**********
This is my opinion only.
Eigen337