I would classify this as “expected” news, but news nonetheless. When we took the PSP, Ted commented on the direct loan portion of the CARES act. They were going to “look into it” but it wasn’t hard to imagine that we were going for it.
Now I’m curious about the details since the government was requiring collateral and wonder what kind of rates we are getting.
I believe I read somewhere that the government was going to require some preferential stock, but not in the same way as a bond. So might me a hybrid “loan-bond” type thing. I’m also curious about the seniority of this loan since the last private loan we took was a senior note. At his point we need every penny we can get. It’s not likely that we’ll be able to break even until 1st or 2nd QTR 2021. If the government doesn’t launch a CARES II act I can see us filing chapter 11 if our cash reserves go below 4-500M.