RE:RE:RE:RE:BULLETPROOF: MEG has SURPASSED USD 600M NET DEBT TARGET !- NVA has RELATIVELY LOW LONG-TERM DEBT
@ 6/30/2024:
- $ 166 million 7.875% 2026 Senior UNSECURED Notes
- $ 50 million credit facility
- $ 16 million EDC letter of credit
- so the BUYOUT will be in MOSTLY MEG common shares
- so the NVA DEBT that must be PAID OFF in the ACQUISITION is a VERY DOABLE $ 232 million
- afterward, $ 16 million EDC letter of credit will be UPSCALED in MEG TAKEOVER since MEG Energy already has a LARGE EDC letter of credit
- Paramount Resources (POU-TSX) will NOT GET any special treatment as ALL NVA shareholders will be TREATED EQUALLY
- the Riddells will 'PROBLABLY' be HAPPY to DIVERSIFY their INVESTMENT HOLDINGS with BITUMEN EXPOSURE in ADDITION to their NATURAL GAS and NGLs with the RIGHT and FAIR EXIT PRICE for NVA
- PLUS, it will be MUCH EASIER and FASTER to UNLOAD MEG shares into the MARKET COMPARED to their PRESENT SITUATION with NVA 'should' they CHOOSE to DO SO
z173