Interest savings would be 22 million a year vs 44 mill one time tender offer at 6.25
25% par would be a 6.25 dollar price for all who wants to tender there shares. Lets see if there smart enough to do it in a timiley manner before oil rockets back up.
They should get atleast 75 percent participation rate
They save 22 mill a year in interest payments for 44 mill one time tender offer. No brainer management are you LISTENING
Common holders would welcome a R/S abate the alt BK. Pay your debts managemnet aka PFDS and senior and secured and unsecured debt
Yes R/S is only fewasible options pfds will survive in that senerio and should thrive to atleast 5 bucks a share where management would make a tender offer to buy them in at that price and most holders at this point would welcome some relief.
True but there in survival mode and its better then the alternative which is bankrupcy even the secured new note holders would be tied up in court for a few years. The common part of the deal was a just a throw a bone kicker. 20-1 reverse split is way to go and a must for this company to survive
offering buy back the pfds at 20% of par (25). Thats 5 bucks a share and retire another 100 mill in debt. Common holdes will be diluted but better then the bankrupcy. They will be around to fight another day stronger and leaner with much less debt. Evenually they can buy back common stock when times get good
1 bill potential reseves is crazy to have an EV of 588 mill with the lowest cost drilling in the region and 10% irr with 40 oil truley dumbfounded
Why is this trading at 2 with an e/v of 588 mill. With potention 1 billion in reseserves?
panic creates oppurtinity
What a waste of a CEO
in 45-48 range now cost saving on intrest payments and new wells drilled. They are doing everything to right the ship. Oil will rise and these preferred shares will be a no brainer buy when you look back
And one of the best managements in the industry