Hi Space Cadet et al., Thanks for the rap but I really cant...

Hi Space Cadet et al.,

Thanks for the rap but I really cant claim any better insights on this fanacing.

Fact is.....I got it wrong.

About 6 months ago, I calculated that raising equity below 8-9c was NOT a valid option given a minimum potential sale value of the project (I think it was US$31m/%). But it looks like the market is substantially below that ...maybe US$15-20m/%. I was hoping that the CNE (and possible FAR) sell-down would put better optics on the value which would have lifted the equity component.
Not to be.

I do agree with some here that the PE issue may have scared off a few banks. Credit Committees absolutely detest ownership and/or operatorship changes...it negates all the guarantees/warrantees and insurances that bundle all project finance packages.
I also was a bit surprised by the 'late' addition of the FPSO...(an extra $700m?) which would have made the financing more not less difficult....banks really dont want FPSOs as security.

Anyway...I'm not really happy with the way things played out...I'm sure this would have been a "worst-case" scenario for the Board.
But it is what it is...and if I was looking at this today, I'd back the truck up.
Yet there are too many skid marks from my previous trucks.

Cheers,