that type of statement is unrealistic, they just sold stock to cover a huge capital loss for goodwill write down on their books, I agree with south buckeye that when appropriate they need to pay down debt, but just meeting needs for capex would be nice. They are still in a fragile situation. what they need to do is cut salaries at the top to make up for the misguidance and wrong directions they have taken this stock. IMO
Issues there are the prepayment make whole call costs with paying down debt. Yes they have what 550 million outstanding on the revolver, but the rest of the debt can only be redeemed via the make whole provisions which means the cost to call the roughly 2.9 billion is much larger than that, to be exact at current treasury levels the full cost to call the total 2.9 is 3.83. Of course they could pay down as little as they like, and focus on the revolver. Meanwhile the debt maturity does not become an issue till that first is due in 5 years, that debt also is the cheapest to make whole call but also carries the lowest coupon cost. Just wanted to expand on the difficulty of paying down corporate debt.