I own TOO one of the partners, but all of them including TK have a very sizeable debt load on their balance sheet. I believe the company is run well, but a dividend cut was needed in this rough time in the energy sector. My main concern is how they will fund the debt going forward, as the bank's may not refinance or lend to help meet their funding requirements, and the debt and capital markets they may not have as easy access to. Now that the share price has gotten killed, its made it even worse and harder. Also, how about being in compliance with their stock covenants? I dont know the answers to these questions.....but investors obviously fear the debt. I am hoping they find a way to make it through as I'm going to wait for the recovery or sink with the ship. I own the preferreds of TOO at a lot higher price...
It depends if they suspend or not. It can't be cut. It's either paid or suspended. It's all about whether the company will survive or not. At the current share price of the commons you have to wonder if they will have any access to the debt market if needed and their current covenants whether they are in compliance or not. I have no clue about either just somethoughts. I own the preferreds at much higher levels
Now that the US export ban has been overturned, wouldn't this have a large effect on the need for offshore services, and wouldnt this have a huge negative effect on TOO business? I may be wrong as I will admit I dont understand all of the market dynamics, so please let me know your thoughts. Thanks.
Common is getting absolutely destroyed premarket, it has just completely collapsed. I am a preferred holder and own a lot of shares, and now thinking of picking up some TOO common shares. The market is either completely overreacting, or the business itself is signficantly changing and there is real trouble....I dont know which one it is.