RE:RE:RE:Interesting development......i wondermrmomo wrote: No need for apologies Mr. gonatgasgo, it's understandable as a s/h you're trying to get to the bottom of this and trying to understand what's going on here. And i'll try to help if can, even if i'm not a s/h myself. That's the purpose of these forums......
From what i can gather, Crew doesn't have the cash to pay off this debt, even a good portion of it, as i've previoulsy stated. Imho, this is more of a shell game & moving the debt elsewhere. It's possible they "might" even reduce that debt somewhat. But by how much is still up in the air. For me, if i was an actual s/h, i would actually be more concerned with WHAT factor led to all this, or why all of sudden they made this akward decision. They might have their reasons, and they "might" be valid, but we just don't know WHY really.....
But if i were to guess, it COULD have some thing to do with the fine print below, regarding their credit facility.
As at December 31, 2022, the Company’s bank facility consists of a revolving line of credit of $170 million and an operating line of credit of $30 million (the "Facility"). The Facility revolves for a 364 day period and will be subject to its next 364 day extension by June 2, 2023. If not extended, the Facility will cease to revolve, the margins thereunder will increase by 0.50 percent and all outstanding advances thereunder will become repayable in one year from the extension date. The available lending limits of the Facility (the “Borrowing Base”) are reviewed semi-annually and are based on the bank syndicate’s interpretation of the Company’s reserves and future commodity prices. The Facility provides the ability to repay up to $125 million, reduced by any outstanding drawings on the Facility, of the Company’s outstanding senior unsecured notes by drawing on the Facility prior to May 1, 2023. If the Company elects to repay any of the unsecured notes by drawing from the Facility, the Company will be required to meet a pro-forma secured Debt to EBITDA ratio at the time of draw of less than 1.2:1.0, must maintain a minimum of $65 million of unused borrowing capacity after the draw and until the completion of the Facility’s next review on or before May 15, 2023 and comply with other conditions which have been met. As the Borrowing Base of the Facility is based on the Company's reserves and future commodity prices and costs, there can be noassurance that the amount of the available Facility will not be adjusted at the next scheduled Borrowing Base review on or before May 15, 2023. The Facility is secured by a floating charge debenture and a general securities agreement on all the
assets of the Company.
Doesn't the excerpt say that the maximum that can be put on the credit facility to pay off the bonds is $125 million. So the rest of the redemption must be paid by cash.