RE:RE:RE:RE:RE:RE:RE:RE:RE:Triple Five Intercontinental GroupThanks for highlighting the new Westbrick presentation. Lots of detail and data points for benchmarking. I get the impression KKR is priming this thing for a liquidity event given they’re 10 years into their first financing and are possibly facing fund maturities in November.
It’s worth remembering all of SDE’s big deals were difficult situations with lots of hair. BXE, CQE and T5 were all CCAA type situations and it looks like Inception was a distressed deal involving a variety of debt/equity players with divergent interests.
The Cenovus assets in the West Central Alberta Deep Basin might be worth paying a premium for in an auction simply because of synergies resulting from contiguous land holdings and joint infrastructure ownership.
Petrus’ Ferrier looks a bit more like a new area outside of SDE’s two core areas and feels like the type of thing where one would want a very good deal vs the alternative of deploying SDE’s capital in developing existing holdings. And yes, Petrus has its hands full with its debt and now requirements for posting cash margin on all of those hedges. So maybe a CCAA opportunity emerges in the future, though it feels like there is more money available to the industry these days and more patience on the part of lenders.
In any event, lots of potential activity with some distressed sellers, PE funds looking at maturity walls (Hammerhead, Velvet, Westbrick…), supermajors like Shell and NOC’s like Taqa as well as all of the NA seniors looking to divest non core assets. All with assets in SDE’s core areas.
Just don’t issue more undervalued paper unless its an extraordinary deal please!