Obsidian Energy Ltd T.OBE

Brutal interest rate on their 125 million dollar debt issue

[TheRexmember]

12% interest rate for 5 years?

anybody else think management needs a kick in the nutz here? Maybe cut back the production growth bonuses and fix the balance sheet before running in ten directions spending like it is 2014....?

there are a lot of better teams to invest with

[arnolddiver]

Are u serious? The fact that Loukas executed in this type of debt environment is a testament of his skills as one of the best canadian oil patch ceos out there. He said he was going to complete the refinancing and he pulled thru. The debt markets are brutal now. Many companies esp oil ones can't even tap the debt markets now. I think the call option is 2yrs so it can be paid off then. Even

[Flush11]

the financing is awful. distressed debt interest rates and for what? To move the drilling program up by a year? Sure glad they drilled 8 viking wells this summer. Don't know how the company could possibly have avoided spending 10% of the debt package on those barn burners. a truly terrible financing and managment that has lost credibility .

[Spanito]

This post has been removed in accordance with Community Policy

[TheRexmember]

They are not printing the money. They are just borrowing more at distressed rates.  12% second mortgage. Well done.  7.25% over prime. 

[Kramerkarma]

15 mill /yr everyone blowing it out of proportion... just show me the FCF at $95 oil like 250M with capex normalized ... after the 15M so yea big ol nothing burger.