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Pieridae Energy Ltd T.PEA

Alternate Symbol(s):  PTOAF

Pieridae Energy Limited is a Canadian energy company. The Company is an upstream producer and midstream custom processor of natural gas, natural gas liquids, condensate, and sulphur from the Canadian Foothills and adjacent areas in Alberta and in northeast British Columbia (BC). It owns and operates three sour gas processing complexes at Waterton, Caroline and Jumping Pound. Its footprint covers over a million gross acres (807,000 net acres) in the Foothills and makes up conventional gas reservoirs in North America. Across Alberta and British Columbia, its footprint stretches over one million gross acres of land, with ownership of three deep cut gas plants and more than 3,800 kilometers of pipelines. Its foothills include the southern foothills, central foothills and northern foothills. Its southern foothills have three main fields: Waterton, Carbondale, and Burmis. The Company also has a production facility in the Northern Foothills of Alberta and in Northern BC.


TSX:PEA - Post by User

Comment by commonsense101on Jun 15, 2023 8:10pm
185 Views
Post# 35499227

RE:new financing ...

RE:new financing ...Did i not read somewhere that their CURRENT cost of capital was closer to 30%??  Anyone validate  or have additional comments pleae post....

 what you saw, up until a year of two ago, was that the full in cost of borrowing was over 22%, when an obscured "fee" to TEC got rolled into the cost of the term loan.
That fee of $50m got rolled into the principle. Since then the real cost has been the 15%- on that higher amount.

So 15% is (was) the cost.

That cost has only been reduced. Plus removing the loaded gun from TEC- for a price.

The other cost is some pretty substantial dilution. If the SP increases- the new lenders get to buy 10% of the shares at 49 cents. So if the SP goes up, dilution comes in to diminish the gains. Since PEAs fundamentals have not changed, there is no compelling reason to think an SP increase is going to outpace the dillution much.

There seems to be some slippery further dilution that TEC gets if the promised asset sales dont retire that 18% Bridge Loan- a tidy price for TEC handing in that loaded gun.

I would guess the new lenders are planning on long term profits from holding those shares they get to buy at 49 cents. Thats probably how long everyone else will have to wait too.
 
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