tag:blogger.com,1999:blog-1527840491496268397.post3507243302242045300..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Walter Energy's "Senior Secured Leverage Ratio"Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1527840491496268397.post-68400230380008666382014-08-01T12:34:05.321-07:002014-08-01T12:34:05.321-07:00Here are all of the amendments to the credit agree...Here are all of the amendments to the credit agreement:<br />http://www.creditbubblestocks.com/2014/07/all-amendments-to-walter-energy-credit.html<br /><br />And the 7th amendment:<br />http://www.sec.gov/Archives/edgar/data/837173/000110465914051071/a14-16711_3ex10d1.htm<br /><br />What it says about the SSLC:<br /><i><br />2. Section 10.08 of the Credit Agreement is hereby amended by deleting the ratio “8.00:1.00” appearing opposite the Fiscal Quarter ending June 30, 2014 and inserting the following in lieu thereof:<br />“Unlimited, or in the event that the Borrowers have not received proceeds of Permitted First Lien Notes (issued as Permitted Refinancing Indebtedness pursuant to Section 10.04(i) in respect of the Total Revolving Loan Commitment) in an aggregate principal amount equal to at least $275,000,000 or such proceeds are not applied to a permanent reduction of the Total Revolving Loan Commitment within 7 days (or such longer period during the Fiscal Quarter ending September 30, 2014 as may be determined by the Administrative Agent in its sole discretion) of the Seventh Amendment Effective Date, 8.00:1.00”.</i><br /><br />So it looks to me like the SSLC was "dealt with" by a temporary reprieve and will be back in effect for 9/30.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-49391947212814013882014-08-01T06:14:35.121-07:002014-08-01T06:14:35.121-07:00didn't they deal with this in the new bond dea...didn't they deal with this in the new bond deal?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-57482570440086689062014-07-31T20:51:44.435-07:002014-07-31T20:51:44.435-07:00Seen this many times.
When a co is in such dire st...Seen this many times.<br />When a co is in such dire straits, its serves no purpose for the co to be upfront about the financial situation. What would be the good that could come of it? Have suppliers put them on cash and carry terms? Cut off what credit they get now? So the exec's just put up a bold front and say all is under control even if they are talking to a bk law firm as they say happy things. <br />What is interesting to watch is how the stock still holds up until bk is actually imposed. It really should be a penny stock at this point.whydibuyhttps://www.blogger.com/profile/10101676402335591169noreply@blogger.com