UPDATE: Weatherford (WFT) Trading Halted with News Pending; Analyst Notes Tightening Debt Levels
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(Updated - November 1, 2016 12:20 PM EDT)
Weatherford (NYSE: WFT) trading halted with news pending.
UPDATE - Wolfe Research said earlier today that Weatherford may need to conduct an equity raise and possibly divest assets.
In a note dated for yesterday, analyst Chase Mulvehill said Weatherford's debt covenants are getting "tight" and the company could stand to raise $250 million, though the analyst believes $850 million might be more prudent.
Mulvehill also thinks a divestiture of Land Rigs and Pressure Pumping assets might be something for Weatherford to consider.
In total, the analyst sees Weatherford raising proceeds of around $2.5 billion. That would allow the company to cut debt to $4.5 billion by the end of 2018 and to $4.2 billion the subsequent year.
Wolfe Research rates Weatherford at Peer Perform with a price target of $5. Shares were down 14 percent at the stoppage
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