Surge Energy Inc (Alberta) T.SGY

Debt repayment wont come from more asset sales

[soundandfury]

The banks want their cash asap........sgy will issue shares to pay debt......20 to 50 million shares should bring debt down to 50 million or less.........this is the whole purpose of the consolidation is it not.......so best to wait and see and possibly pick up some sgy shares after the furthur dilution happens.........only by reinventing the company and completely paying off its debt can sgy get a whole new banking syndicate credit facility..........imo

[downtozero]

I'm not sure that's true. If you look at the BDC loan agreement, it's more like extortion. It looks more like bleeding them dry over years vesus quick repayment. Mortagage rates are <1%. However, BDC is charging 5% first year which must be put back onto the prinicipal, then 6% next year then 7% the following year. Extortion 101.

[Chris007]

Well, that tells you something about the company's financial prospects last year...most o&g companies opted out of receiving BDC loans if they could find other private/public means of financing. It really was a lender of last resort... I don't begrudge the BDC for charging them those kind of interest rates, when NOONE else is willing to lend them money at all.

[pennydredful]

These   rates   are most   reasonable   considering   the   BDC    loan  is  in  second  position  after    the  bank   loan.