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Capital Power Corp T.CPX

Alternate Symbol(s):  CPXWF | T.CPX.PR.A | CPRHF | T.CPX.PR.C | CPWPF | T.CPX.PR.E

Capital Power Corporation is a growth-oriented power producer company. The Company develops, acquires, owns, and operates renewable and thermal power generation facilities and manages its related electricity and natural gas portfolios. It is involved in the operation of electrical generation facilities within Canada and in the United States. The Company has approximately 9,300 megawatts (MW) of power generation capacity at 32 facilities across North America. Its projects under construction include over 140 MW of renewable generation capacity and 512 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta, and over 350 MW of natural gas and battery energy storage systems in Ontario and approximately 70 MW of solar capacity in North Carolina in advanced development. Its La Paloma facility is located in Kern County, California. The Company also has a Harquahala natural gas generation facility in Arizona.


TSX:CPX - Post by User

Post by starboy101on Nov 13, 2023 4:03pm
349 Views
Post# 35732769

The Lord spoke to me last night!

The Lord spoke to me last night!And this is what he told me:

Buy the CPX.PR.C, this is a rate reset preferred share who's reset is coming up at the end of this year. At that time they will have to either reset the dividend to the new rate for the next 5 year period or redeem it.

I believe that the chance of redemption at the end of this year to be quite good. Especially considering that they recently raised $350 million by way of a note offering which they announced would be used to repay debt.

Doesn't mean for certainty that they will redeem this series of preferred but I believe the odds are good that they will. It would certainly make all the sense in the world to do so since the reset coupon rate will be in the neighbourhood of 7%. Which is a significant bump up from it's current rate.

So whats the downside risk it they don't redeem it? If it is in fact redeemed it will be at $25 currently trades as I write this at just under $23. If the company decides to go with resetting the coupon. If you are buying it under under $23 based on the reset terms you will earning ROR of 7.5% to 8% for the next 5 years. Which ain't bad.

You are welcome now go in peace!




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