November 3, 2018 |
When Petrotrin halted its oil refinery operations in October at Pointe-a-Pierre, Trinidad & Tobago, many analysts cheered the decision. The money-losing facility has long been a drag on the state-owned company, whose losses have amounted to $1 billion over the last five years.
But while the closing may have ended a disappointing chapter for Petrotrin, it left investors in limbo. It’s not certain that the company can refinance its existing long-term debt, which stands at $912.5 million, or 4% of the country’s nominal GDP, according to Moody’s. What’s more, bond investors wonder how it will pay upcoming maturities. The yield on $850 million in debt due August 2019 tops 12%.
Trinidad & Tobago’s Petrotrin has $850 million in bond debt
maturing next August and the holders remain unclear over the
repayment of the notes.