$900 million new financing at average 8.6%

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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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jurek

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$900 million new financing at average 8.6%

posted on May 22, 2011 01:30AM

New financing is as follow:

$550 Millions Notes at 8.5%

$350 Millions Notes at 8.75%

Total interest payment on this loan is $77.37 millions which average to 8.6%.

Since CLL is receiving only $864 millions ($36 millions commission cost) the actual interest on the loan is 8.9%.

If you add the interest payments on $100 million convertibles the total interest payment will drop from $102 millions to $82 million dollars. $20 million savings in the short term.

As you may remember my estimation was $900 millions at 8%. Some suggested that this was way to high. Well, I was wrong. It is slightly higher then I anticipated.

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