Are there any lucky/speculative souls here who jumped in on this back in December or late February? They would have tripled or quadrupled their investment by now. It has certainly been quite a turnaround.
Teck's management has been aggressively selling assets in order to meet their short-term debt obligations. In addition, Teck's creditors have given the company a reprieve, allowing some short-dated debt obligations to be rolled over into longer term loans. The quasi-recovery in the corporate bond markets, particularly the market for junk, has helped. Teck recently rolled out a US$4 billion structured-note issue with 5, 7 and 10-year tranches (all with yields in the 11-12% range), which will allow them to pay off the big bridge loan they took on to buy Fording Coal Trust.
FYI, I don't own any Teck stock directly. I just think it's an interesting story for a company that looked like it was on the ropes 5-6 months ago after the prices of its major outputs sunk like rocks. Ha!
Teck's management has been aggressively selling assets in order to meet their short-term debt obligations. In addition, Teck's creditors have given the company a reprieve, allowing some short-dated debt obligations to be rolled over into longer term loans. The quasi-recovery in the corporate bond markets, particularly the market for junk, has helped. Teck recently rolled out a US$4 billion structured-note issue with 5, 7 and 10-year tranches (all with yields in the 11-12% range), which will allow them to pay off the big bridge loan they took on to buy Fording Coal Trust.
FYI, I don't own any Teck stock directly. I just think it's an interesting story for a company that looked like it was on the ropes 5-6 months ago after the prices of its major outputs sunk like rocks. Ha!