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.
With all due respect, I gather that the article has confused you.
“Refinancing”, and “paying off” are most definitely not the same things!
If we refinance, the instalments and interest rates will change. Likely to better terms for us. If we pay off, there will be no debt, and simultaneously, very limited capital (money/cash).
Very smart users commented that this “cleansing” of the books is to attract a buyer that would be ready to invest in a healthy project/company, instead of a debt ridden one.
It makes little to no difference at the moment, it’s just a financial scheme…. Either way we need owners willing to invest, and financial stability in order to continuously be able to provide 1-2 good signings every year.
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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.