Algonquin Power & Utilities Corp T.AQN

Ouch 🤕

[swingtradeeeeee]

Another half a point on that floating rate debt. Maybe 5 dollars a share on the NYSE, 50% dividend cut leaving a 6% yield. Just a guess from one of the dumb retail investors.

[Capharnaum]

From the Q3 conference call: At the end of Q3, approximately 22% of our consolidated debt outstanding was subject to variable interest rates. A 100-basis-point increase in the variable interest rate would impact interest expense by approximately $16 million annually, of which, an estimated 70% would be related to our regulated business. For our regulated business, interest rate increases are

[swingtradeeeeee]

There will be over 3 billion in floating rate debt after the Kentucky purchase. 

[Capharnaum]

They will also increase their net revenues when the Kentucky purchase closes which should cover most of the extra interest charges from the acquisition. At current rates, I expect the net effect of the extra debt and extra revenues from the acquisition to be about neutral on a yearly basis, but that varies quarterly due to the seasonality of revenues. From my calculations, If rates increase by

[darb]

Thanks for highlighting that Capharnaum.

[swingtradeeeeee]

Hopefully interest rates won't have to go much higher. Just a bad time to be taking on more debt after paying too much for an asset.

[swingtradeeeeee]

Some of the talking heads that got this company so wrong are saying 6 percent interest rates before this cycle is over. Hope not for all who have taken on a lot of debt recently. 

[AlwaysLong683]

How much debt does AQN have in CAD at Canadian financial institutions vs. USD at American lenders? The FED will be making their interest rate announcement December 14 and US inflation for October (7.7% and 6.3% core) was running hotter than Canadian inflation (6.9% and 5.3%). The FED has raised rates 75 bps each over the last four announcements to a current rate of 3.75 - 4.00%. I expect a 50

[swingtradeeeeee]

I don't know who holds the credit facility they will be drawing on but they report in United States dollars. I'm in the pause now for all of 2023 camp.

[swingtradeeeeee]

I'm Canadian eh so I can only talk canadian. What's the difference between a Canadian and a canoe?

[swingtradeeeeee]

Only a canoe tips . Hopefully electrical rates in the US northeast won't be depressed 

[Capharnaum]

The difference though between AQN and other companies is that all the debt that's included in the utilities capital structure is a pass through to customers rates, so only the non-utilities debt really affect their net cash. That said, there is a lag between the interest rates and the moment they get the increased cash flow from customers rates but it's a one-time thing, it's not an

[pennydredful]

According to  a recent  investment banker  I spoke  to  , to  quote   him  " currently AQN  is unfinancable from a common share prospective"   which I take it to mean  no share sales are possible due to  a lack  of confidence given the steep slide in the share price and the disclosures that brought that on. 

[svsingh83]

Who is buying millions of shares every day?

[bmbruce]

Currently 22% is being financed subject to floating rates but keep in mind that this percentage will increase when the Kentucky Power deal is finalized as mentioned in the earnings call…