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the 2026 7.875% bonds, which are selling at around $6 or $60 per $1000 face value. This issue will pay <br />out $5.90 in the two coupons payable May1 and October 1, 2016 (adjusted for accrued interest you will <br />pay when you buy). After that your total investment will be $10.00 per $1000 bond. Where could you get a <br />better option with leverage like this. If the asset sale goes through, there is high probability they will make <br />bond interest payments for 2016. If the restructure of the 2018 6% bonds goes through, there will be a <br />reduction in interest payments and maturity relief and extended life well into 2017, where cash flow <br />improves immensely. <br />I suggest you read Slide 9 from this Cloud Peak investor presentation where they show the share of coal <br />production in the US rising for only PRB and ILB, the rest of the coal industry will be taking the production <br />cuts on the chin. <br />http://bit.ly/1 PX7Qau <br />For the less adventurous the Cloud Peak 2019 8.5% bonds can be bought with 38% yield to maturity. <br />Cloud Peak only has $500 million in bonds outstanding, with $300 million due in 2019 and they have over <br />$500 million in liquidity. FBR upgraded Cloud Peak to market perform today. <br />04 Feb 2016, 02:59 PM <br />fritz1023 <br />There is one pending report which could affect bonds and the stock. The 4.75% 2066 bonds have a build <br />in interest suspension mechanism. It is based on asset/liability ratios and debt coverage. these ratios had <br />to fail 3 quarters in a row in order to trigger the suspension. The Quarter ending 12-31-15, appears to be <br />the third quarter of in a row in which the ratios have failed. I believe the management is mandated to <br />suspend and accrue the interest payments until such time as the company meets the ratios again. <br />I expect it to be reported at the quarterly earnings meeting. It is good news and bad news. The bad news <br />is, any suspension will scare the bond market. The good news is the suspension will increase cash flow <br />by $30 million for 2016. <br />If you hold the 2066's, thinking you will get enough interest from the 6-15-2016 payment to double the <br />current $2 sell price, you might want to consider taking the current bid and the accrued interest. If you are <br />happy to own the bond and see the accrued interest build up, forget my suggestion. <br />04 Feb 2016, 03:20 PM <br />