Bonterra Energy Corp T.BNE

Debt

[bandit69]

Notes 5 and 6 in the financials....

The subordinated debt is term debt due Nov 2024.  Since it doesn't state otherwise, I assume this debt could be paid at any time.  Term debt is good.  The interest rate isn't too bad either on this debt.

Subordinated debentures:

"The debentures mature on October 20, 2025 and all or a portion of the principal amount outstanding can be repaid without penalty after October 20, 2024, however, all interest owing to the maturity date must be paid."

So this debt cannot be paid early but big deal term debt is always preferable even if the rate is a litle higher it provides some peace and stability vs. ongoing "reviews" by wankers...I mean bankers.  Clearly all debt will not be paid before they reinstate a dividend.  If they intend to wait until Oct. 20, 2024 then there is a real problem here.  I can't see that happening though.

The bank debt is the holdback here as we knew.  I question if they can maneuver some new debt to get rid of the bankers so it can be business as usual.  I realize the bank debt *should* be paid this year but if bankers maintain their restrictions until then, I would say BNE should seek other creditors anyway since that is unreasonable in this commodity environment.

[TheRexmember]

I think the bank debt has a hedging requirement otherwise it is fine as far as rate and conditions. The BDC debt has some restrictions under the government program it rolled out in but the rate is dirt chesp.  these guys wouldn't have much trouble arranging some other term debt or debentures. I suspect they jst said to heck with it for a quarter or two, we wanted debt down a little

[bandit69]

Note 4 stipulates the restrictions for bank debt. They're prohibited from paying any distributions under the current terms. Some other covenants regarding capex too. As someone mentioned on this board before, the credit line is up for renewal by May 31 and maybe some things will change. Fingers crossed.