OptsyEagle:
Check out documents in the following:
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds483_e.htm The latest document from June 7, 2017 notes very succinctly:
"We wish to inform you that, pursuant to Article 21.3(b) of the Understanding on Rules and Procedures Governing the Settlement of Disputes, Canada and the People's Republic of China (China) have agreed that the reasonable period of time for China to implement the recommendations and rulings of the Dispute Settlement Body (DSB) in the China – Anti-Dumping Measures on Imports of Cellulose Pulp from Canada (DS483) dispute will be 11 months from 22 May 2017, i.e. the date of adoption of the DSB's recommendations and rulings. Accordingly, the reasonable period of time will expire on 22 April 2018."
DP prices have remained firm now for several months at ~$920USD ... helped in no small part by the strength of BEK & NBSK markets (with swing mills switching to such vs DP to max profitability)
If FTP's MOFCOM burden essentially comes off in ~3mo from now, it'll remove one more weight from their shoulders.
Cardboard & roundball100:
- LIBOR & 5.75% brings them to about 7.5% at current rates ... so not much different than their other long term debt ... and with it as a revolver vs a loan, then they only pay for it as they need to
- the amount isn't big, but does allow them to leverage an unencumbered asset to add to their cash pool
I think they want to get ahead of things as much as possible with the $62M of 2019 debs ... the more they can get those paid down/paid off ... the more proactive they can be elsewhere ... their other lenders all seem fairly friendly