Folks, Contragalo is 100% correct in his view that if the Senior notes offering is successful that it would be a major win for the company (I just confirmed and received clarity that it would replace the current loan facility). If effect, it would push out the companies first principle payment 5 years and also increase increase their revolver limit substantially. AND....would be much less restrictive. What is not to love....
This would breath a huge breath of of fresh air into the company and the anvil would be removed from over them because of the loan repayment schedule.
This would be unreal for this company and the company management hits the road immediately to present to potential lenders. They have tremendous value in their assets to securitize this so I beleive it will be a go.
Also, as info, the heli-rigs cost nearly $50 to construct. If these happen to be sold for the right price, that as well would put a death knell into their credit overhang.
With the rebels in Columbia calling it quits (hopefully) Columbia is going to really heat back up with respect to drilling budgets.
All extremely positive for Tuscany. Strong buy.