RE:RE:The street has figured out the gameI'd appreciate any comments on some TA numbers:
- Excluding the assets put into RNW and TA's coal assets (that will be retired), TA will only have around 1,400 MW left.
- As of their last financials they have $5.2B in debt & preferred shares outstanding. With the latest Sarnia dropdown and AIMCo share sale that should reduce this by around $740M to $4.5B.
- They'll get some remaining cash flow & compensation on the coal assets, but probably not enough to appreciably reduce this debt load.
- Any value from their remaining 64% share in RNW may be needed to service the debt. This makes it very difficult for them to grow as their cost of capital is uncompetitive vs other stronger balance sheets in the industry.
Basically, I'm concerned around the size of the remaining debt vs the relatively small amount of assets that are left. I appreciate any views, dissenting or otherwise, on any of this. Thanks.