Surge Energy Inc (Alberta) T.SGY

New Announcement today

[Tanman1914]

https://surgeenergy.mediaroom.com/2021-12-09-Surge-Energy-Inc-Announces-130-Million-Term-Debt-Financing-New-150-Million-First-Lien-Credit-Facility-Repayment-of-42-Million-BDC-Term-Facility-and-Provides-Strategic-Outlook-to-Shareholders

[Relaxrelax]

That's huge!  Banks no longer controlling the company forcing stupid hedging! This strategic repayment allows the Company to exit the Business Credit Availability Program ("BCA Program") that governed the BDC Term Facility. Participation in the BCA Program placed certain restrictions on Surge's capital allocation options, including the payment of dividends.

[Chris007]

Ummm..who do you think is lending them the credit facility if not for a bank, or bank consortia? Obviously the BDC term facility is the covid loan they got from the government, as lender of last resort...but yeah, the new loans are obviously from a bank or bank consortia, we will find out exactly which entity(s) extended the credit later on.

[Relaxrelax]

The point is they have more control and can now offer a dividend if they so choose.

[pennydredful]

The new  2nd lien term  loan  is likely from  non bank institutional investors .  The  first  lien  bank  loan  is likely  with   the same  banks  that  have been there  all along  except it   appears  one  dropped  out   so it could  be a new bank  joined the

[cahclick]

Getting refinancing done today is a very significant milestone in this ESG world yet the market gave an underwhelming yawn. Not sure why. glta  

[fortunefavorsus]

Takes time for a small out of favor company like this to build momentum.  I do think we have hit bottom and it is up from here as they have significantly better quarters next year.  Buy it while its cheap and before it becomes recognized.  I added Friday.