On the subject, there's possible collateral oil damage: Alike Linn debt, Sovereign Bonds in the aforementioned countries & others could take a major hit if oil keeps plummeting.
On a more redeeming note, least you got your double digi yielding distribution on 11/15. Beats the Bank of Sealy Posturepedic. Being paid to wait during the colonoscopy phase....
Seriously, given these fundies how does the equity/units have ANY VALUE beyond pennies?
Halcon did debt for equity with similar players and the equity TANKED. Once bitten....Importantly, the 11/15 interest on the 5/19s was PAID today.
Appears this is being Bear Raided. Short interest still 8% and has had NO support from Barrons clip, before yestdays bad news.
Gonna get interesting, and hopefully not a fiasco. Keep your ears on the Earnings call, 11/5. Question is: do they make a bond swap for Jnr Secured like the Halcon deal (Goog it and see the latest 8K redeterm agreement).
Ron, look at the Halcon Bond swap transaction and read the amended Redeterm agreement in the 8K. If Linn offers the same strategy, the only pot of gold I can see is the Jnr secured position on the creditor totem pole and a rate, albeit not what you're currently getting on your discounted 2020s, but certainly MUCH better than the bank of Sealy Posterpedic. At this point, the longer they can stay afloat & pay noteholders a decent yield, the better.
Reeks of a Bear raid, yet puzzling given the guidance & analyst price targets. OTOH, when you're trading @13 Book, made a BIG move ytd, you're under the short scope. Boston Biz Jrnl artle says something to this extent.
OTOH, The company can call the Bonds on the call dates. The '19s are Continuously Callable @the Co's discretion and have the next 2 Call dates of 5/15/16 @101.6 and @Par on 5/15/17.
-8% at noon with no news. The ENTIRE sector is being bear raided and/or used as an ATM.
$.29, more like $.26. At this rate & price, the co has "ONLY" approx $2.6 billion in bond debt and If they hang in there and keep buying it could be reduced significantly before maturity/par. The int expense $savings is pure gravy...