Yes if this compnay survives this mess the prefered shares will be a buy of a lifetime. Only time will tell but they have been way ahead of the game with reducing deby almost 50% so far including the pfd shares
dumb dumb dumb
Why would you think that? Oil rebounds to 60 in another 6-8 months they will be fine and thrive. Tey will do a couple more debt exchange and there will be very little senior unscured debt left. All interest on the 2nd lein debt have a forbarence for over a year. 16 million cash in bank and 65 million on credit facility left is 80 million in liquidity as of today. Plenty of land to let go and they will be fine
There is no reason to tender your shares in this low ball offer. they need to amend the offering and add 2 dollar per share in cash to previous terms and open it up to 100% of C and D series. Almost all will tender there shares and there cash lay out would be insignificant for the amount of debt they would be wiping out. But no Management can't find there way out of a paper bag.
. The latest swaps will reduce total debt by roughly $110.7 million to $416 million, with the earliest due dates of notes now 2018 for $75 million of notes. So far this year the company has reduced its debt by nearly $200 million after selling the notes in the first part of the year to pay down bank debt. The company is reserving another $50 million of notes when it amends its credit agreements in case there are more conversions. That debt reduction will flow to stockholders' equity, and turn the account positive, although the company will remain highly leveraged and needs to do one or preferably two more $100 million deals to bring the leverage down more. As per seeking alpha and that report you read was for quater ending sept 30th. They still had 15 mill in escrow that was freed up in past month from eagle ford sale that wasnt accounted for in last report
They currently will have after this exchange 410 million senior debt and 90 million liquity as of dec 8th. They sill have another 50 mil in senior secured load looking to take aout another 100 million in debt. Total debt remaining will be about 365 million in couple months. Thats a total of about 600 million in debt wiped out this low oil rout. When things turn expect the common shares to fly back to all times high if they excute there remaining capital right.
Why in the world would you buy the common here at .46 You need to buy the preference shares series C or D at 1.25 it like buying the common at half price at .25 cents. Sell your common by the preferred
another 50 will buy next couple days easiet money ever made wallstreet missed this ard play ty
the huge spread bwteen the common and Preferred stock. Short the common buy all the Preferred shares you can under 2.50
what a joke mangement is
2.50 for each of the series c and d shares and lock in a 80 percent - 20 percent gain upon conversion. No way to loose
They should have threw in a common kicker into the mix atleast 3 for 1 also
Rather hold 25 par at 10 percent with suspended but cumulative dividends
cheap cheap cheap
They wil make a tender offer soon for outstanding shares. No brainer buy
better places to put your money like GDP-D and GDP-c Preffered shares