Pembina Pipeline Corp T.PPL

In Anticipation

[TheBridge]

Well, I'm pleased that IPL will become part of PPl as I just couldn't bear seeing Brookfield take it over. I had at one time considered adding PPL to my porfolio but just never got around to doing so. I did however consider that PPL was the best bet as a partner for IPL when PPL cancelled their petro chemical plant idea in Dec. of 2020. So, I sold almost all of my IPL this morning at $20.35 and left a just 1000 shares to be converted when the time comes. I turned around and used the proceeds to acquire PPL at $38.00. I'm positive that IPL will bring a lot to PPL as the two are combined into a much larger and efficent  business. I was so anticipating the completion and commissioning of the Heartland Complex and watching the revenue growth starting in 2022 but I'll now watch it give that substantial boost to the PPL shares. This turned out to be the cheapest way to acquire a new polyproplene plant that PPl had considered building themselves and now there's no one in Canada to compete in the plastic pellet market and 60% of the product already has committed buyers. Let the growth start!

[stocktalk]

But wait ! its not a done deal yet till 2/3's of ipl voters say yes !! What about the huge debt of ipl, how is ppl going to finance it ?   Issue more shares and dilute share price? imho

[fauxtomato]

>>What about the huge debt of ipl, how is ppl going to finance it ? Finance it at a lower interest rate?

[Divypro]

The merged company takes on the existing debt. No need to refinance it. The debt is not an issue.

[Albatross]

Once Heartland is started up IPL will have an EBIDTA increase of close to 50%. They were on track to not only continue service their debt, but to pay it down significantly and/0r increase their dividend accordingly.. they wanted to target a DEBT to EBIDTA ratio of 4.0x. With heartland boosting ebidta I think they would of only needed to deleverage by just a bit more than 1billion to get to the 4

[Albatross]

Again, if IPL shareholders choose to go it alone they are now on the hook for 350mil to break that aggrement... It's like as if IPL management forced a poison pill on it's own shareholders to make sure this deal happened. So they kind of took going it alone off the table and forced a take over one way or another. The only thing that will affect Pembina's offer is an even higher priced

[hawk35]

The debt is not an issue.  Below is RBC comments on IPL debt from June 1.  Notice why RBC thinks buying IPL will turn from a good deal to a GREAT deal.  Heartland startup combined with assets sales will make this a GREAT deal.  Below is RBC comments. We believe the focus will be on the credit and financial metrics... We think that items such as the optics of Inter Pipeline

[hawk35]

One more comment.  I joined several IPL shareholders in selling all my IPL shares and buying PPL.  This was my intention even if Brook had bought IPL.  With or without IPL, PPL is a good investment.  With IPL PPL becomes a great investment and gives PPL a significant revenue stream that is not tied to burning fossil fuels.