RE:RE:2028 notes at 6% : PositiveHey Pablo.
The beauty of this 30% to 35% pay for every maturity due is that we get to keep all of our cash ($2B) on hand until we get the EBITDA up to $1.5B as they are predicting.
The sales are catching up slowly. Look they're going to be making more money soon. It's a given and all you have to do is look at the difference from Q1 to Q2 in revenues. Up $181M. That's just 1 Quarter. Their Revs will go up by $600M in 2021 just from what I see. We're already at $5.8B/year, so their prediction of $7.5 by 2025 is very reasonable and very attainable. In fact they'll reach $7.5B in Revs by 2024 easily from what I see. So the prediction they've made is not outrageous.
The other beauty of this 30% to 35% down is that
we are buying time so we can start generating +FCF. Once that starts to kick in, where every year we are covering $1B of operating expenses, interest included on the LTD. Then we can save $500M every year after that to pay down 35% of every LTD maturing from 2023 on, and still keep our reserves of $2B in hand. Mind you it won't happen that fast, because we still gotta get to 2025. But every year from now till 2025 will be getting better and better. I don't care if they start making $200M +FCF every year from now till 2025, that's $1B of profit. That takes care of the Dec. 2024 LTD, and we still have our $2B on hand.
The problem with burning cash is, you can't stop the bleeding. But when you are earning profits it's an easy way stop the bleading. I predict that the share price of this pure play, will go up exponentially from now on $2 X $2 X $2 X $2 X $2 from now to 2025. The only caveet is the 2.4B shares. I would do a forward split of 2 for 1 at $8. That will reduce the shares to half. That's all.
PabloLafortune wrote: By the way, Tourmaline Canada's largest natural gas producer just got $200M 8 year money for 2.55%. Of course they dont have much debt and are making money hand over fist right now. Would be nice if BBD could borrow at those rates one day....