Stock reacting badly to the news that under the new credit facility, only $200 million available for paying off the 2015 bonds The sale of more Barnett off the table. Must close the sale of Horn River this will provide the capital needed to refinance debit. Complete the sale and the stock price will move back to $3 - $4 range.
IN CC Darden and co stated they expected to close the refi deal by the end of the 2nd qtr... 6/30. Also said they preferr to surprise the market with announcement...I think that was the either the 5th or 6th question. Annual board meeting to approve, so should be coming shortly.
I hope Listening to the CC they said if funds from Barrnett sales was used for redum the bonds the remaining cash available under the credit agreement left them uncomfortable for funding the other projects. Yes they want to clear it up within the next 45 days, the end of the 2nd quarter. But the sale of Horn River is on the to do list. When asked by analyst if the purchase price was the hold-up, Darden's answered it wasn't. The drag appears the buyer wants to limit current production. Asian buyers of reserves in Horn basin want the gas to feed the LNG plants being constructed loaded on ships and taken home.