Two players who stand out in this regard are Jaire Alexander and Preston Smith. Several veterans are remaining on the team, but their future with the organization remains uncertain. In this article, we will delve into the reasons why cutting Preston Smith may be the toughest roster decision the Chiefs have to make at the 2023 training camp. As such, this roster decision becomes a pivotal moment that could shape the team's future. Of course, the Packers aim to build a championship-caliber roster. The focus of this decision centers around the possibility of cutting Preston Smith, a talented and experienced linebacker. Some people involved in deals also talk about “aggressive structures” where alternative financing gets wrapped into a bank lending facility at a 50 percent premium.As the 2023 NFL training camp approaches, the Green Bay Packers and their coaching staff face a crucial decision that could have a significant impact on the team's success in the upcoming season. That was contingent on a renewal of its credit facility and a $100 million injection from Texas private equity firm the Energy and Minerals Group. Private equity cash can help plug that hole, but it comes at a steep price.įor example, a unit of American Energy Partners LP, a firm set up by former Chesapeake Energy Corp CHK.N CEO Aubrey McClendon, in June swapped $336 million in senior 9 percent notes for shorter-term debt at 12 percent and essentially no restrictive covenants. Simmons & Co analysts this week estimated that the North American oil and gas companies they follow would face a $45 billion shortfall next year even with crude at $60 a barrel. They need to keep spending to maintain production so they have revenue to service their debts at a time when lower prices have reduced cashflows. Highly indebted companies are the most likely targets. “I think you will see opportunities to acquire acreage, acquire production, perhaps even come in and acquire companies,” he said. Optimists believe in the longer run oil prices will return to around $100 a barrel thanks to new demand fueled by a growing middle class in the developing world. While crude’s retreat means more pain for oilfield companies, private equity firms, with their high risk tolerance and longer investment horizon, are prepared to make deals that may take years to pay off. “It was enough of a change, and enough of a psychological change, that on the buy side, you simply had to reprice.” DEEP-POCKETED AND PATIENT “I’ve had two deals impacted by the $55 to $45 dollar (a barrel) shift,” said Steve Tredennick, a partner at the Paul Hastings law firm in Houston. MHR.N said it would get an unnamed private equity fund to pay for up to $430 million of drilling work in Ohio in return for rights to the land.ĭealmakers say potential sellers of oilfield assets are now discussing bids they would have rejected a few months ago while the changed outlook for oil allows buyers to adjust bids down. On Monday, shale producer Magnum Hunter Resources Corp. there will be an opportunity for private equity-backed companies with plenty of capital in place to go out and start buying.” “It didn’t solve people’s problems, so now when you roll to 2016. “The capital markets showed up in force in the first quarter much to everyone’s surprise,” said Carl Tricoli, managing partner at Denham Capital, a private equity fund in Houston. That opens up opportunities for deep-pocketed private equity firms to push for restructuring or buy assets as many oil companies need cash to replenish banks’ slimmed-down lending facilities, service their bonds and finance drilling of new wells to keep pumping oil and sustain cash flow. The number of high-yield bond and share issues has tumbled more than two-thirds from levels seen in May, Thomson Reuters data show. But since crude prices began tanking again in early July after a partial three-month recovery, oil firms have finally started to feel the squeeze.Ī torrent of $44 billion in high-yield debt and share sales in the first half of this year has slowed to a trickle with oil now at just above $42 a barrel, 30 percent below its June levels and 60 percent down from June 2014, CLc1 and a more pessimistic view taking hold that global oversupply could keep oil cheap for years. Throughout much of the crude market rout that started in mid-2014 oil firms could rely on generous capital markets investors betting on a quick recovery in prices, which made any asset sales look unattractive. A pumpjack brings oil to the surface in the Monterey Shale, California, April 29, 2013.
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