Canacol Bonds Extend Rout, Sink to 51 Cents on Liquidity Worries
Published 25 March 2024, [BFW]
By Vinícius Andrade
(Bloomberg) -- Bonds of Canacol extended losses after facing their worst session on record Friday, as traders grew concerned over its weak liquidity.
- The natural gas producer ended 2023 with $39.4 million of cash and cash equivalents, it said last week; Canacol scrapped dividends and postponed the drilling of an exploration well amid efforts to preserve cash
- The 2028 bonds slid as much as 5.6 cents on the dollar to 51.5 cents on Monday, according to Trace data
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“We were disappointed overall by the lack of reassurance from management during the earnings call,” Lucror Analytics analyst Lorena Reich wrote in a note
- Still, Lucror doesn’t expect the company to face difficulties making its payments
- Canacol cited the sale of its Arrow Exploration stake and entering into a short-term credit facility as options if further cash needed: Lucror