RE:RE:BTE Debt Reduction, Share Buybacks, DividendsWhen BTE announced their $800M USD Senior Note Offering on April 13 to help fund the Ranger acquisition, the BOC Rate sat at 4.50%. The interest rate BTE will pay on the notes will be 8.50% (almost double). Reason? Too much debt / non-investment grade credit rating.
BTE's Balance Sheet as at September 30 showed:
Current Assets: Cash + Receivables = $564M
Current Liablilities: Trade and Other Payables + Dividends Payable = $697M
Non-Current Liabilities: Credit Facilities Drawn: $1.0B + Long-Term Notes: $1.6B
Total Owed: $3.3B not including Asset Retirement Obligations.
BTE is not a large O&G E&P company, so funding the acquisition of Ranger was a rather large fish to swallow. Not saying BTE is currently in any financial trouble, but not confident that BTE's share price will rise a significant amount and hold those gains over the next six months or so - could be dead money or even drop in value from here.