Veresen Inc. T.VSN.DB.B

RBC upgrades Veresen

[hawk35]

RBC increased SP target from 15.00 to 16.00 today.  Here are the comments they made.

Veresen has entered into three separate agreements to sell its power business for aggregate proceeds of $1.18 billion. The transactions are expected to close in Q2/17.The announced timing of the sales are in line with the previously communicated expectations. RBC CM positively views the power asset sale announcement with sales proceeds of $1.18 billion modestly ahead of its expectations and the company delivering on its guidance for transaction timing and expected close. Further, the asset sales solidify the funding story with respect to Veresen not needing any capital markets issuance, which RBC CM thinks has been well-received by the market