lnr debt

Hello Everyone,

I just wanted to get some peoples opinions on LNR's current debt levels. As we've seen, they have recently issued an announcement regarding a $200m unsecured notes issue. The company currently has a little cash on hand, however current liabilities marginally exceed current assets. In particular, trade payable's exceed trade receivables. Now the company has spent money this year on new acreage and what-not to fuel expansion, but is reliant on this notes issue to fuel further wells expansion into 14-15. Being a capital intensive industry which needs large capex to make money, my concern is that the debt may possibly build unless FY14-15 earnings are sufficient to strengthen the balance sheet.

My question is then, do you all think that the current liabilities and debt are serviceable at these levels, and what do you think the options are to the company should it not be able to raise money in the $200m unsecured notes issue?

Thanks!