RIG's share issuance is a win for Credit. Disappointing for Equity although could be a step toward eventual shareholder returns by loosening bond terms via upcoming debt refinancing transactions
Thanks for all your work and thoughts on this name. I agree with what you are saying but the bigger issue in my opinion is that RIG was very confident on the last call about some new contracts coming through and adding to backlog at attractive rates (especially after losing the work in GOM).. I think the timing of this issue does not bode well for the state of the contracting market. There has been no news on contracts - if that news was coming, my assumption is RIG would have and could have waited to release that before selling stock
As I was climbing through my high rise apartment window on my way to the building ledge I reflected on your thoughtful calming analysis on RIG, I just keep repeating everything eventually will be alright. Thanks.
The equity raise is not good treatment of equity investors. If RIG wants to get back into the good graces of equity investors it’s on them to communicate a plan for returning back that cash longer term. A simplified capital structure appears to be a goal of the new management team, and would help with that but requires execution in debt capital markets.
Thanks for all your work and thoughts on this name. I agree with what you are saying but the bigger issue in my opinion is that RIG was very confident on the last call about some new contracts coming through and adding to backlog at attractive rates (especially after losing the work in GOM).. I think the timing of this issue does not bode well for the state of the contracting market. There has been no news on contracts - if that news was coming, my assumption is RIG would have and could have waited to release that before selling stock
Thanks for sharing. I think the issuance was an interesting signal that was debtor friendly and defensive.
Will post more on Saturday. Appreciate your feedback!
I share similar concerns!
Thanks for the update, RIG as well as the entire deepwater sector reminds me of the saying, "The struggle is the glory."
As I was climbing through my high rise apartment window on my way to the building ledge I reflected on your thoughtful calming analysis on RIG, I just keep repeating everything eventually will be alright. Thanks.
The equity raise is not good treatment of equity investors. If RIG wants to get back into the good graces of equity investors it’s on them to communicate a plan for returning back that cash longer term. A simplified capital structure appears to be a goal of the new management team, and would help with that but requires execution in debt capital markets.