Post by
R_J_ on Jul 13, 2017 11:02am
News - Icelandic Bond Settlement
ALTERRA POWER NEGOTIATING FINAL SETTLEMENT OF ICELANDIC BOND
-
Alterra Power Corp. (TSX: AXY) announces that its subsidiary, Magma Energy Sweden, is in the process of negotiating a final settlement of its US$71.3 million non-recourse bond (valued as at June 30), which matures on July 16, 2017.
-
The collateral under the bond will be delivered to the bondholder (formerly the municipality of Reykjanesbr), a consortium of Icelandic pension funds (Fagfjrfestasjurinn ORK) and consists solely of shares of Alterra's Icelandic subsidiary, HS Orka hf comprising a 12.7% ownership stake.
-
Once delivered, Alterra's ownership stake in HS Orka hf will reduce accordingly to 53.9%, and Alterra, through Magma Energy Sweden, will continue managing HS Orka hf and consolidating its financial results
-
RJ
Comment by
BoldForbes on Jul 13, 2017 11:36am
Bondhonder's valuation of HS Orka = $71.3M US / 12.7% = $561.4M US Alterra's valuation of HS Orka based on above = $561.4M US x 53.9% = $302.6M US Alterra, of course, has other operating assets and projects in its pipeline. Today's market value (per Yahoo!Finance) $250.84M US There appears to be a valuation gap, possible opportunity. Bold Forbes