No brainer buy on Preffered series c and d
Dont think the common will trade much lower then .55 they just knocked off a ton of debt and intresent payments on Preferred shares since they are paying in common stock for the time being. Yes some dilution but also huge cost savings. Will tender more senior debt too in next couple months so total debt will be down to under 300 million. IF the company sold some tms acrage about 100k out of 300k they could knock down debt by another 150mill. This is what they have planned as soon as more senior debt is tendered and after pfd debt is exchanged. Total debt should be less then 150 mill in next 6 months with 100k tms sale. Still will have incredible acrage in TMS and eagle ford
panick creates oppurtinity
All will be converted to common besides the sahres that werent tendered around 4 mill shares total will be outstanding. They could sell there eagle ford acrage for 150 mill for net debt of 250 mill and still sitting on 300k acres of TMS land. Easy buyout target if all this is done.
Sorry also left out the 50 mill they put aside for another senior secured exchange further reducing debt to 350 mill before years end and also they have 26,000 acres in Haynesville 17000 eagle ford and 300,000 in TMS. With eagle ford sale they could fetch 150-175 mill for that land at today prices further reducing debt to 200 million and under. No preferred divy obligations as they will be pain in common stock. Kudos to management no way no how will they need to file bankruptcy. Preferred C and D are a steal at 1.50 period
C and D series thats a 70 percent gain from where they are trading now
absolutly insane theres that big of a disconnect bwteen the common stock and preferred stock with the 5-1 conversion in a couple of weeks and also you get paid the dividend on the preferred stock while you wait for the conversion. Short the common here and buy Preferred C and D lock in more then a 80-9- percent gain with the dividend payment of the Preferred shares
Not really they are profitable with all the senior debt and junior debt exchanges puts them in survival column with oil over 50. Knocked out over 50 percent of all debt and will do more senior exchanges. All said and done 60-70 percent of debt wiped out. They will be good to 2017 no problem with oil around 45. If oil rises over 50you will see a nice return on capital.
Because they will do a reverse stock split after the tender
you literally cannot lose even if they filed BK tomorrow if you short the common or if your short the common and buy the c or d series preffered anything under 2.75 a share you lock in gains. They are 1.30 now never seen anything like this makes zero sense
Your right the conversion wont happen to 2 bucks a share but they are planning to do a reverese stock split probabaly 8-1 and the the series E gets adjusted accordinly . These oppurtinitys dont happen often proabaly never.
you will not tender your shares at this 5-1 conversion without a 2 doaar kicker in cash for each prefferd share tendered. They can do it and would be foolish not to. And to open up to the the entire series of C and D issues
Yes you are 100 percent correct arb play will be done by the time dec 8th comes rolling around. Makes no sense to convert them with this low ball offer with most holders holding from the par value of 25.
No you are wrong about the reverese split and getting 5 for 1. The series E will be adjusted accordingly to the reverese split IE.. reverese split 5 for 1 on common the the series E will be adjusted to 1 for 1 with common. The Series E are convertable anytime after dec 8 to common stock regardless of the price of common
What a complete joke these morons are
Yes they have options and wiped aout around 600 million in debt including the last preferred exchange and also looking to retire 100 mill more with 50 mil senior secured notes set aside. So yes they are struggling but they time atleast another 12 months. If they sold 100k tms at 1k an acre thats 100mil more in debt they can retire bringing there total including preffered debt down to 250 mill. With plenty of valubale land to boot when oil returns. Be patient grasshoppers