Tidewater Inc (TDW) has disclosed a new risk, in the Debt & Financing category.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Tidewater Inc. faces significant operational and financial risks due to restrictive covenants in its debt agreements, which limit its ability to incur additional debt, create liens, and engage in mergers or asset sales. These covenants, along with mandatory prepayment clauses tied to financial ratios, could constrain the company’s liquidity and flexibility, impacting its ability to seize corporate opportunities. Non-compliance with these covenants could lead to defaults, allowing lenders to accelerate debt maturity and foreclose on collateral, potentially jeopardizing Tidewater’s financial stability. The restrictions also hinder the company’s ability to secure further financing, posing a material threat to its business operations and financial health.
The average TDW stock price target is $70.00, implying 10.78% upside potential.
To learn more about Tidewater Inc’s risk factors, click here.