RE:$750 Mil vs 1 billion RBLLonegaurdian19 wrote: If they were to Refi the $750 million vs a billion @ LIBOR + 4 so roughly 9% interest.
250,000,000 @ 9% is 22.5 million in interest per year
Why take on the extra principal? If it's not used to make above a 9% return.
this asset is self funded, that's why the bank is happy to extend the RBL.
AOI pays a dividend of $47 milion to its shareholders annually.
I would hope at some point KH gets his shii together and starts using funds to pay shareholders more than 10 cents a year
They will need every penny for Namibia. Also need as much dry powder as can muster to pick up distressed assets as debt laden Euros and N. Americans start to fail like dominos when Soviet style debt extend and pretend is exhauseted.
New money peasant empire builders do t return moneu to SH they spend it on business jets, options, expat platinium global helathcare plans, procurement kickbacks to offshore holdings, and crazy comp packages LOL.