Grim days at Noble Group brighten slightly with a $2 billion credit facility extension from its banks until mid-October. This extension would provide the crisis-hit commodity trader some greatly needed leeway to source for solutions to its debt problems.
Following this, Noble’s shares rose as much as 10 percent, The Business Times reports. This perhaps reflects some level of short-term relief as opposed to optimism for the company’s outlook, given how its bond prices have been pretty much left unchanged. Its 8.75% coupon bond maturing in 2022 is currently trading at 37.73, according to bondevalue.com.
Investors still remain concerned over Noble’s ability to devise a strategy to comeback from this downturn.