RE:RE:RE:Net debt really a 250 million surplus with Tpz sharesPosted this two days ago. " On October 8, 2021, Tourmaline increased the credit capacity of its revolving credit facility from $1.8 billion to $2.55 billion
and concurrently cancelled the $950.0 million term loan, which had a higher interest rate. "
GunnerG wrote: Still do get why it would be prudent to pay off low interest loan in a rising rate environment.
From the notes of the FS.
On October 8, 2021, Tourmaline increased the credit capacity of its revolving credit facility from $1.8 billion to $2.55 billion
and concurrently cancelled the $950.0 million term loan, which had a higher interest rate. The aggregate borrowing capacity of the Company was reduced from $3.3 billion to $3.1 billion.
Senior unsecured notes On January 25, 2021, the Company issued $250.0 million of senior unsecured notes.
The notes bear interest at a fixed rate of 2.077%, payable semi-annually commencing on July 25, 2021, with a due date of January 25, 2028 and rank equally with all other present unsecured and subordinated debt of the Company. There are no financial covenants on these senior unsecured notes.
On August 9, 2021, the Company issued $200.0 million of senior unsecured notes. The notes bear interest at a fixed rate of 2.529%, payable semi-annually commencing on February 12, 2022, with a due date of February 12, 2029 and rank equally with all other present unsecured and subordinated debt of the Company. There are no financial covenants on these senior unsecured notes.
idleweiss wrote:
The interest expense is approx 10 million a quarter or about 40 million a year. The rate that they pay dropped in the third quarter of last year because the Bank of Canada rate declined. But rates are expected to start rising again in March. It would be prudent to pay down this debt now that we are in a rising rate environment.