Hi Shi?

....How realistic is it to hope for better financing conditions?...

Thanks for the extra work you encourage me to do :=).

The refinancing is always possible. Obviously there are cost of doing it. If you go to the bank to renegotiate your mortgage you have to pay several months of the interest differential so they can let you go out of the hook.

IMO CLL would end up with more shares, higher debt at the lower interest rate. Our local PROS may add their opinion on this subject.

Here is what the CLL and Banks sign in regards to $600 million Senior Notes :

1. ....The Senior Notes are unconditionally guaranteed by... all company’s and its subsidiaries’ assets, with the exception of Connacher’s investment in Petrolifera

So, if you want to sell refinery (like some suggested) you would have to renegotiate the condition of the Senior Notes).

2.....The company may redeem some or all of the Senior Notes at their principal amount plus a make whole premium if such redemption occurs prior to December 15, 2011.

After December 15, 2011, the Senior Notes may be redeemed at redemption prices ranging from 105.125 percent reducing to 100 percent on December 15, 2013 and thereafter.

The company may redeem up to 35 percent of the of the Senior Notes prior to December 15, 2010 at a percent of the prredemption price of 110.25 incipal amount plus accrued interest with the proceeds of certain equity offerings, provided that
at least 65 percent of the aggregate principal amount of the Senior Notes remains outstanding on existing terms.

Upon a change of control of the company, the holders of the Senior Notes may require Connacher to purchase the Senior Notes at redemption prices noted above, with a minimum price of 101 percent of the principal amount to be repurchased.