Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Big Dog who wrote (40509)	3/21/1999 2:11:00 PM
From: VLAD	Read Replies (1) of 95453

Can anyone here who is knowledgeable in banking/financing comment on FLC's $1 billion junk bond offerings? My impression was that this was a positive for FLC share holders since many were wondering where the money would come from and feared dilution via a stock offering which we now know wont happen. Can FLC pay off these notes early if they desire? I noted that these bonds had a pretty high yield of 11 to 12% which IMO is ok while FLC finishes up its 9 construction projects. I know nothing about junk bonds and the rules and regulations behind them. I assume they are the same as a corporate bond except they are much more risky since they are unsecured and thus give a much higher interest rate(risk vs reward in the bond world). Please enlighten me if you know how this entire financing vehicle helps or hurts FLC. I assume as long as oil prices hold above $14.00 the junk bond deal was good for FLC??

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