Helix group trading, What happened
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He tries to invest in good souls. By a. The news that precipitated the drop was actually spread across two days.
So what Helix Energy Solutions is muddling through a difficult period in the energy sector, noting that oil prices actually fell below zero at one point earlier in the year. Although there were technical reasons for that, it basically meant helix group trading, for a brief moment, oil companies were paying customers to take their oil. Oil prices are still at a relatively low level, though much improved from zero, leading oil companies to pull back aggressively on their capital spending plans.
That's pretty much to be expected, since Helix's customers aren't spending like they used to. The proceeds are going to be used to pay down existing debt that would have come due over the next year or two.
Which brings up what is likely the most important issue here: the interest rate. The new convertible is going to cost Helix 6.
That's a material uptick, especially given that market interest rates are at historically low levels. Put simply, investors want more yield today because they aren't as confident about the company's future as they were when the old debt was issued. That's not good news and simply adds to the negative of the higher interest costs that will result from this issuance.
Now what Most investors should probably avoid the energy sector today. Given the increased interest rate needed to get the current convertible bond deal done, and what it says about the market's view of the company, it's not surprising that investors sold off Helix's shares on this news. Motley Fool Returns.