RE:Debt RepaymentATH was only allowed to make early repayments on the first half of the $350 million of debt they acquired two years ago. At an interest rate of 9.75%, lenders are in no hurry to get their money back.
The excess free cash flow will allow ATH to continue buying back shares. After the NCIB buyback is completed, they might be looking at an SIB buyback so they can reward shareholders and continue to cancel outstanding shares.
No worries. I think all of the excess money flowing in this year is in good hands.
https://www.atha.com/uploads/AOC_IR_Deck_September.pdf page 16
o US$162MM Notes
• US$350MM issued October 2021 @ 9.75%; due Q4 2026
• Retired ~US$188MM since inception using Free Cash Flow
redemption feature and proactive open market purchases
• Free Cash Flow redemption feature now terminated within the
indenture as principal <US$175MM