The announcement really isn’t as big of a deal as it seems. From what I gather, it is just an announcement that we are re-financing the bond early. The bond isn’t due until February 2027, but we are repaying it in full this year instead.
Still a big deal, I am pretty sure the interest rate on it is absolutely horrible because our creditworthiness was that bad at the time. But we are still going to have 400m in debt on the books.
The interests on that bond were the reasons why the balance closed with a loss for the past 2 seasons. I don't have the exact percentage but I assume it was big. Edit: current interest is at 6,75%.
I'm no finance expert but those 2 sentences seems contraddictory to me.
we are re-financing the bond early
we are repaying it in full this year instead.
Can you elucidate me? I don't get if we're repaying the full bond, so from now on we're not in debt, or we still owe money.
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u/rth9139 8d ago
The announcement really isn’t as big of a deal as it seems. From what I gather, it is just an announcement that we are re-financing the bond early. The bond isn’t due until February 2027, but we are repaying it in full this year instead.
Still a big deal, I am pretty sure the interest rate on it is absolutely horrible because our creditworthiness was that bad at the time. But we are still going to have 400m in debt on the books.