common_cents, IMO they need to get rid of the Lateral debt ASAP, it is at too high an interest rate to warrant being kept outstanding (16% including the 4% PIK provision). As of the end of 3Q they had $27M outstanding on that line.
Most of the other debt they have is at reasonable, or even below-market, interest rates, so there is no urgency to pay that debt down right now. Although, the loans they granted to the Benchmark shareholders have some pretty hefty principal payments due over this year due to provisions that provide for accelerated principal payments when the company is making a lot of money. So there will be a need to come up with funds one way or the other for that stuff pretty soon anyway.
Right now I would focus on taking out the Lateral debt. The question is, do they do a raise now or just wait another month and do it after they have announced 4Q. I had been thinking that they would be better off waiting until they announce 4Q but with the stock going idiotic I'm wondering whether they should just pull the trigger on a quick little private placement now, and then maybe do a larger public secondary offering in the spring.
