Int Rates on RBLs
Posted: Sat Mar 04, 2023 8:37 am
I am assuming most RBL’s are floating rate instruments. Prime rate was 3.5% in March of 22 and 7.75% in Feb 23. Stunning move and still rising. I didn’t hear anyone on conference calls discussing. Great that 2022 afforded most FCF to pay down debt including RBL’s. Something to keep an eye on and of course ebitda does’t reflect interest charges. In fact I guess most interest is capitalized anyway and depleted.
More importantly is the coming slow down in the economy that will soon start showing more dramatically as data is looking backwards. Time to hunker down and lever down.
More importantly is the coming slow down in the economy that will soon start showing more dramatically as data is looking backwards. Time to hunker down and lever down.