Quicksilver Faces Cascade of Maturities: Distressed Debt
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Pressure is mounting on Quicksilver Resources Inc. to refinance $350 million of notes and avert a cascade of maturing debt it has little chance of repaying as the unprofitable natural-gas producer’s cash dwindles.
The company, which operates in the U.S. and Canada, must refinance or retire at least $250 million of its 7.125 percent senior subordinated bonds by Jan. 15, 2016, to avoid triggering early maturities of more than $1 billion of higher-ranked debt, according to credit agreements. With analysts projecting losses this year and next, Quicksilver will burn through its cash in less than 12 months, according to data compiled by Bloomberg.