Big Banc Split Corp T.BNK

re-filing of Management's Discussion and Analysis

[Coop007]

I sure hope this is not another punch to the N.U.T.S
Have been hanging on waiting for the final bell, But all the low punches are taking their toll

[good40]

Is this associated with their credit facility based on the price of Brent ? Also something about a loan that needs to be paid or refinanced due in Q2. Did I miss that in the original MD&A or has it been added ?

[cashtango00]

just states if  brent is at a certain price point, a loan covenant is breached, but the lender would adjust it.  The one thing you can take away from those charts is the BNK was miles away from any debt covenant breach at the ned of Q3 based on their finances .. This is a non issue for now...

[good40]

They might have to continue to pay the full $57 million tax dispute in 2016. The fully utilized $20 million loan comes due in March, paid in cash if not extended. Some of their revolving line of credit might have to be repaid, based on the price of Brent. They intend to spend $65 million on their capex budget. You can make best and worst case scenarios from the above so I think it's more

[LordIskander]

The fully utilized $20 million loan comes due in March, paid in cash if not extended.   Do you not beleive anything the management of any company ever says? They made it clear during the last confererence call that the Reiffeissen facility has been rolled-over 5 times, including at the height of the 2008 crisis. It's a non-issue.

[good40]

I'm not saying it won't be rolled over, I'm saying that they stated it might have to be paid from cash. You have to weigh both options, otherwise they wouldn't have provided both.

[wallop13]

Managment never said the loan would be rolled over. They said they think the loan will be rolled over. I think it will be rolled over too, but we can't say we know what the lender is thinking.

[braincloud]

I think the covenants and collateral are pretty good.

[wallop13]

Seems like Bankers is lagging the market today. I added another 90k to my position. I really like the risk/reward here. I'm happy to hold this stock for at least a year.

[prichard68]

nice!!!!! just drop another 72k bucks like it was buying a cuppa coffee

[braincloud]

Kinda gives you some context huh? Some of us have "real" money, which could explain why some of us are serious about what we post. Just sayin

[Shlinker_]

72,000.oo? arent there netter play's with that kind of money? I mean BNK looks "ok", but they are in hot tub right now, the waters bit warm. Uncertainty is not a good gamble. I only have 8300.00 invested here. Wouldnt PXT, GTE, or WCP be better investments? Im just asking.

[Shlinker_]

netter? ^better

[wallop13]

I guess it depends what you're looking for. I think the stock has a 50% discount for the tax dispute. At the end of the day when the volatility subsides and demand re-balances, BNK will have 16,500 barrels flowing, 120 million ish in debt and Albania is not going to cook their golden goose. Believe it or not, BNK looks better than most companies that are trading at much higher prices per

[good40]

Wallop13, from $10mm in quarterly cash flow, they need to pay the interest on $120mm in debt, the $4.275mm monthly payment to the government plus ~$16mm in capital expense. On top, if the $20mm loan is not rolled over in Q2, they will be required to pay it in full. 2016 looks to be a very tough year.

[wallop13]

True. I believe there is also G&A expenses too. Let's take Q1, say they pay 3 million interest, 5 million G&A, 12.83 million tax deposit and 9.5 million capex (no drilling until Q3). That's 30.33 million. They have about 40 million cash plus the 10 million cash flow (50 million cash). So this budget is not sustainable for more then another 4 months.   One of the following

[good40]

Good post wallop13, thanks for that effort. Mustn't forget that they've just re-filed their 9 month MD&A showing that a certain percentage of the tranche 2 revolving line might have to be repaid and that the other fully utilized $20mm loan may become repayable in March. One other point is the tax dispute. Given the Albanians have announced that they intend to rewrite the oil

[Shlinker_]

Yes, excellent discussion Wallop13 and good 40. I personally want to see all the sides of a company and its debt and/or challenges moving forward. I find i myself not feeling sad for those who are too one-sided, or too one-dimensional in their investment thinking. Seems highly irrational. Thanks for posting 2 sides to a story. I may jump back in when more is clear for BNK.

[wallop13]

It seems more in-depth now. I remember they mentioned it on a conference call though. They said it should be renewed. Bankers kept their debt low, so I don't see future issues with bankers debt. The covenants might need to be adjusted for the current environment, but that's the same with 99% of oil producers. You really can't expect covenants that were conceived while oil was $100 to