SSR Mining Ord Shs T.SSRM

Money needs

[templetooth2]

The major components of the company's debt are a term loan of $192.5 million and the 2019 notes in the amount of $179.6 million. The loan amount was reduced (repaid) by $17 million in Q1 and is expected to be fully repaid by Dec 2023.

The 2019 notes are convertible  at $18.48 (US) per share so you could say that's likely to take care of itself. The company is also in the enviable position of having a net cash balance of of $476 million.

This pretty picture makes me wonder about the newly announced credit facility of $200 million. I recognize it's wise to get your borrowing needs arranged when you don't need the money, but these guys REALLY don't need the money. So it raises a question in suspicious minds: Could there be a takeover being targeted? Skeena, anyone???

[Partypanther21]

Just a thought, but could SSRM be preparing to pay off the entire term loan of $193M? This would save the company appropriate 4% it is paying on that debt and eliminate any Libor interest rate risk on that debt until 2023. It would save the company roughly $10M in interest until 2023....not a huge chunk of cash, but probably worth it with capital just sitting there not being deployed. By