RE:Renewable Diesel FIDGood Morning,
Let's go with the process of elimination first to get to my answers.
A- TWM goes it alone- Not a very likely scenario they're debt would be still above their target of 3.0/3.5 range. They might try and sell some assets to make tis happen, possible but again, not sure what properties they would like to part with other than some non-performing assets and those assets probable not fecth a dollar number they are looking for.
C- TWM does not proceed- This is not in TWM blood to pass on an opportunity that can be subsidised by a provincial governmet, I can see this project being delayed until they figure out how to raise the money for this project.
B- TWM uses Private equity- This is the most likely outcome for this project and TWM would try and maintain a 51% interest in this asset. Maybe they use a group of PE's so as they still maintain a higher percentage of conrtrol over the PE's with less than 51% stake in the project. Since PGR assets has been doing all the heavy lifting on the balance sheet, "B" will be my choice of outcome.
One more thing to consider, if the wildfires continue in BC, rail service could slow down or stop all together unitl they come up with a solution to control the trains from igniting a fire. I'm thinking train shipments will slowdown temperarily.
just my two cents!