RE:RE:RE:Refi Effect on SPGood Thoughts here .
They could buyback 10% of the company with 55million they have and reduce the dilution.
They should have had 150CAD million left over after refinancing .
masfortuna wrote: And looking at the numbers again here are now the positives:
1. They are now safe until 2026.
2. A floor is now established at .94
3. The warrants are cashless and will dilute based on when the holder will exercise.
4. They will have several million in excess cash which they could use to buyback shares (10% back would remove a good chunk of the dilution).
5. With the fcf they will garner from oil at $75, they could payback the debt in 3 years on their own and easily carry the 10% and leave some funds for a divy.
In conclusion, they had no choice to refi at whatever cost the lenders offered and unfortunately they are still in debt in an early phase of an energy bull run. If this refi was due in 2 years, they would have just paid it off on their own assuming energy will still be going strong.
So I guess it's not great but .94 is now the floor and I can see this increasing over the next 2-4 weeks to $1.20.
Just my opinion