Tidewater Midstream and Infrastructure Ltd T.TWM

Renewables IPO

[fauxtomato]

https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00052722

You can't fault them for lack of ambition. Prospectus filed for IPO of Tidewater Renewables. I said a lot could be said about the renewable diesel project by the quality of the equity buyer it brought in. The public is the last buyer I'd have expected. And TWM as the counterparty.

[havefun2021]

Wow! Where's that first world guy?

[fauxtomato]

From what I can tell they're trying to get $180M for spinning off essentially nothing (if this IPO goes forward, unlike the Fireweed IPO). The prospectus is interesting and worth a read. Not what I was expecting

[AntoninScalia]

They probably figured they can get a higher multiple by going the IPO route. A separate renewables business should trade at a high EBITDA multiple in this market. Birch Hill being on the board gives me some comfort that they are pursuing a route which maximizes value for TWM shareholders. 

[fauxtomato]

They're selling $40M in EBITDA through transferring rail car leases, working interests in certain components of the PGR and BRC, plus upside through some incomplete capital projects in return for some cash and a new credit facility. I think I understand the arbitrage they're trying to play here, but it's just a weird look for a $1B company to need to sell a spin off to 'unlock

[AntoninScalia]

I also would have preferred a JV partner but this way the story is cleaner, no?  Can attract significantly more investor capital with a ESG focus?

[fauxtomato]

Tidewater Renewables will acquire the Renewable Diesel Assets & Renewable Hydrogen RNG Assets and RNG Business (defined, for the purposes of this section, as the “Acquired Assets”) from Tidewater Midstream for aggregate consideration of approximately $585 million. Lot of interesting details in the prospectus. I understand the idea and their desire to wholly own and control their growth assets

[firstworld]

State sponsored tax payer funded green deal...pathetic. This is dead money since 2017 if they can't make any money now they never will unless they transform to yeat another blodd sucking welfare Keach lime most of the country. So happy we shifted 800 jobs and $300 MN revenue to MX and TX in 2019....not funding any Canadian while collar welfare junkies hahah

[Zebec2021]

[Maxmoe]

I have long suspected the ESG investing theme is all talk no money. It's all complaining from people with no money to put where there mouth is. I've been involved/following this movement/idea/ theme since it was called ethical investing. I remember the disappointing returns from the ethical fund started up by vancity back in the 80s.  Someone in Florida even launched the unethical

[fauxtomato]

>>The pragmatist tells me it's not going to be a hot ipo. Not at all. Definitely not. What sexy brave new world are they really selling ? Some leased railcars, truck racks, and oil storage tanks. It's goofy to the point of seeming desperate. The high multiple might be justified by the potential growth of renewable diesel and some greenfield projects, but all of those require more