Birchcliff Energy Ltd T.BIR

Intention to Redeem Series A and C preferred sooner...

[bossu]

From the Q1 FR
''Subject to the approval of the board of directors, Birchcliff currently intends to redeem all of its outstanding Series A and Series C preferred shares at the end of the third quarter of 2022

Approximative expense:$ 88,2 M

Lot of cash available sooner than anticipated
Long debt to be repaid sooner......before December 2022
And early 2023  dividend increase

[HighOctane89]

Thats pretty funny , I wonder how much of that $88M goes directly into Tonkin's pocket . I don't have much of an opinion on this one but the headline makes you wonder when common shares are getting crushed . The rich get richer and the rest are left to be the PR dept while drinks flow at the Stampede . GLTA here but I'll stick with TOU and a $2/sh dividend .

[PlutusofCrete]

Depends on when you got into the common shares....they aren't getting crushed from my perspective unless the price falls below $4.  HighOctane89 - (8/4/2022 5:06:24 PM) RE:Intention to Redeem Series A and C preferred sooner... Thats pretty funny , I wonder how much of that $88M goes directly into Tonkin's pocket . I don't have much of an opinion on this one but

[TouchDown12]

Management is cleaning up the balance sheet - taking Preferred's off the balance sheet makes it alot easier to be aquired....AND the interest payments tend to be higher (2X+) then usual BIR line of credit.... it make the company way more attractive (if that is the purpose) and drops interest payments. If you have lots of cash around it's the best use of it. We will likely see the positve

[SecondhandGnus]

Both the A and C pref shares were already trading above $25 par value, so there is no windfall to be had by redeeming them.  While technically equity, redemption of these two preferred series is essentially debt elimination.