Author Topic: FELP - Foresight Energy  (Read 285003 times)

Picasso

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Re: FELP - Foresight Energy
« Reply #620 on: January 25, 2017, 02:34:39 PM »
I imagine there isn't much appetite for debt that would fit the 2021 debt restrictions.  The cost would be so high that you might as well refinance out everything or pay with stock.


valcont

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Re: FELP - Foresight Energy
« Reply #621 on: January 25, 2017, 03:06:05 PM »
I imagine there isn't much appetite for debt that would fit the 2021 debt restrictions.  The cost would be so high that you might as well refinance out everything or pay with stock.

Not disagreeing with that but it seems like the equity issuance is so much more favorable to Cline that Murray would rather buy out the whole enterprise or refinance. Atleast the buyout would not trigger the change of control like the last time. I would prefer the dilution and using FELP as a vehicle for drop ins.

jrallen81

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Re: FELP - Foresight Energy
« Reply #622 on: January 25, 2017, 04:44:33 PM »
What are people's opinions about how it plays out for passive holders -- other than debt maturity dates are there any calendar event catalysts?

heth247

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Re: FELP - Foresight Energy
« Reply #623 on: January 25, 2017, 07:21:10 PM »
valcont, here is waht Aqul posted back in Nov 2016:

Is there any chance of a re-fi for the Exchangeable PIK? The new 2021 notes don't allow the refinancing debt to pay cash, or have more favorable maturity terms (see below), so it's going to be difficult to re-fi, to say the least. Are you all assuming full dilution for the PIK in your valuations?

From the Indenture (Exhibit 4.1 from the 9-6-16 8-K):
With respect to (i) any Debt Incurred pursuant to this Section 4.06 to refinance the Exchangeable PIK Notes and all subsequent refinancings thereof (collectively, the “Exchangeable PIK Notes Refinancing Debt”) and (ii) any Debt Incurred pursuant to this Section 4.06 after the Issue Date more than a majority of which is loaned or otherwise provided by an Affiliate (other than the Issuers and any Restricted Subsidiary) (which, for the avoidance of doubt, does not apply to any Debt outstanding on the Issue Date, including the Exchangeable PIK Notes, or any Debt outstanding (whether Incurred before, on or after the Issue Date) that is acquired by an Affiliate after the initial Incurrence thereof), in each case of clauses (i) and (ii) other than Excluded Debt, such Debt must: (a) be unsecured or constitute Junior Lien Obligations, (b) have a maturity date no earlier than 91 days later than the earlier of (i) the Notes Maturity Date and (ii) the date on which the Notes are no longer outstanding, (c) have no issuer, obligor or guarantor thereof other than the Issuers and the Guarantors, (d) not provide for any cash payments while the Notes are outstanding and (e) not contain any negative covenants or events of default that are more restrictive than the negative covenants and Events of Default (as applicable) in this Indenture unless this Indenture is amended to contain such more restrictive negative covenants or events of default (as applicable).

valcont

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Re: FELP - Foresight Energy
« Reply #624 on: January 26, 2017, 06:48:15 AM »
valcont, here is waht Aqul posted back in Nov 2016:

Is there any chance of a re-fi for the Exchangeable PIK? The new 2021 notes don't allow the refinancing debt to pay cash, or have more favorable maturity terms (see below), so it's going to be difficult to re-fi, to say the least. Are you all assuming full dilution for the PIK in your valuations?

From the Indenture (Exhibit 4.1 from the 9-6-16 8-K):
With respect to (i) any Debt Incurred pursuant to this Section 4.06 to refinance the Exchangeable PIK Notes and all subsequent refinancings thereof (collectively, the “Exchangeable PIK Notes Refinancing Debt”) and (ii) any Debt Incurred pursuant to this Section 4.06 after the Issue Date more than a majority of which is loaned or otherwise provided by an Affiliate (other than the Issuers and any Restricted Subsidiary) (which, for the avoidance of doubt, does not apply to any Debt outstanding on the Issue Date, including the Exchangeable PIK Notes, or any Debt outstanding (whether Incurred before, on or after the Issue Date) that is acquired by an Affiliate after the initial Incurrence thereof), in each case of clauses (i) and (ii) other than Excluded Debt, such Debt must: (a) be unsecured or constitute Junior Lien Obligations, (b) have a maturity date no earlier than 91 days later than the earlier of (i) the Notes Maturity Date and (ii) the date on which the Notes are no longer outstanding, (c) have no issuer, obligor or guarantor thereof other than the Issuers and the Guarantors, (d) not provide for any cash payments while the Notes are outstanding and (e) not contain any negative covenants or events of default that are more restrictive than the negative covenants and Events of Default (as applicable) in this Indenture unless this Indenture is amended to contain such more restrictive negative covenants or events of default (as applicable).

I see. All this means is that they can't make interest payments in cash i.e. the debt has to be PIK if they refinance the debt. Murray has lots of levers to play with today compared to last year this time. He may refinance all the debt in one big swoop or just take it private.


Patmo

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Re: FELP - Foresight Energy
« Reply #625 on: January 26, 2017, 09:00:37 AM »
valcont, here is waht Aqul posted back in Nov 2016:

Is there any chance of a re-fi for the Exchangeable PIK? The new 2021 notes don't allow the refinancing debt to pay cash, or have more favorable maturity terms (see below), so it's going to be difficult to re-fi, to say the least. Are you all assuming full dilution for the PIK in your valuations?

From the Indenture (Exhibit 4.1 from the 9-6-16 8-K):
With respect to (i) any Debt Incurred pursuant to this Section 4.06 to refinance the Exchangeable PIK Notes and all subsequent refinancings thereof (collectively, the “Exchangeable PIK Notes Refinancing Debt”) and (ii) any Debt Incurred pursuant to this Section 4.06 after the Issue Date more than a majority of which is loaned or otherwise provided by an Affiliate (other than the Issuers and any Restricted Subsidiary) (which, for the avoidance of doubt, does not apply to any Debt outstanding on the Issue Date, including the Exchangeable PIK Notes, or any Debt outstanding (whether Incurred before, on or after the Issue Date) that is acquired by an Affiliate after the initial Incurrence thereof), in each case of clauses (i) and (ii) other than Excluded Debt, such Debt must: (a) be unsecured or constitute Junior Lien Obligations, (b) have a maturity date no earlier than 91 days later than the earlier of (i) the Notes Maturity Date and (ii) the date on which the Notes are no longer outstanding, (c) have no issuer, obligor or guarantor thereof other than the Issuers and the Guarantors, (d) not provide for any cash payments while the Notes are outstanding and (e) not contain any negative covenants or events of default that are more restrictive than the negative covenants and Events of Default (as applicable) in this Indenture unless this Indenture is amended to contain such more restrictive negative covenants or events of default (as applicable).

I see. All this means is that they can't make interest payments in cash i.e. the debt has to be PIK if they refinance the debt. Murray has lots of levers to play with today compared to last year this time. He may refinance all the debt in one big swoop or just take it private.

Or interest payable in lump sum at maturity date.

There's plenty of room to handle this here, these guys managed to pull a rabbit out of their hat on the default, this is child's play in comparison. The 2021 are structured to not be cut in line for their meal, not prohibit the 2017's from ever being taken care of. I don't think it'll even require much creativity

PullTheTrigger

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Re: FELP - Foresight Energy
« Reply #626 on: January 26, 2017, 05:42:04 PM »
The latest form 4 isn't exactly clear, but it looks like the CEO got about $1 M in stock issued to him.


gadfly

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Re: FELP - Foresight Energy
« Reply #627 on: January 30, 2017, 02:53:54 PM »
What'd everyone think of ARLP's release and call?

Their costs per ton were down big time from 2015 4Q. Still nowhere near FELP, but down from 33.19 to 27.72 per ton.

Price per ton in ILB was down from 4Q last year 49.96 to 45.56.

On the call mgmt seemed confident that 2016 was the floor for gas and coal.

Not much info on exports, really interested to see how FELP is doing on that front...

jrallen81

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Re: FELP - Foresight Energy
« Reply #628 on: February 02, 2017, 03:48:53 PM »
is this recent pullback enough to get anyone interested in adding?

doc75

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Re: FELP - Foresight Energy
« Reply #629 on: February 02, 2017, 04:18:00 PM »
is this recent pullback enough to get anyone interested in adding?

I bought some in the 6.30s today.