Greengas and About Oil
Things can be confusing enough when we only get some of the details from Connacher.
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Here is a portion of the filing from SEDAR...
Calgary, Alberta - Connacher Oil and Gas Limited (CLL - TSX) announced today it has
completed and closed the sale of US$600 million face value of 10.25% Senior Secured
Notes due December 15, 2015 (“Notes”), at a price of 98.657%, resulting in a yield to
maturity of 10.50% and gross proceeds of approximately US$ 592 million.
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According to my calculations, annual interest charges on the $600 million US would be 600,000,000 X .1025 = $61,500,000 US each year for 8 years for a total interest cost of $61,500,000 X 8 = $ 492,000,000 US
In addition, there would be a gain or loss in coverting these costs to Canadian $ each year. The entire principal of $600 million US would be due on December 15, 2015
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About Oil - not sure where you got your $50 million number.
Greengas - your number was $592 million which was the proceeds of the $600,000 loan as they were sold at less than par value.
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As I said in an earlier post, I am concerned with the rate we are paying - until we put this money to work, we are losing big $ as we are paying an effective rate of 10.50 % (on the money we actually received) while earning far less while we keep it invested on a short-term basis. We need Pod1 ramp-up of production and Pod2 approval as soon as possible.
JMHO
XBB
