Perhaps a little harsh. This is the worst climate to raise debt in the last 20 years. To raise 150M allows them to continue work on schedule. They will sell 20% of the project to a steel maker, and then they will be half way there. After that, they only need to raise about US300M debt, and a little bit of equity to be fully funded. The good thing about only having US300M debt is that is doesnt really matter about high interest rates, even if they have to pay 15% for it, that is only about 45M in interest per year, which isnt a great deal when you compare it to the revenues.
MOL Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
