Tidewater Midstream and Infrastructure Ltd T.TWM

Thoughts on the Renewables IPO

[TVR]

The new marketing document for the Renewables IPO looks good.  Given the announcement by Brookfield today of the US$7 billion Cdn $9 billion!) first closing of their energy transition fund, I think the IPO has a good chance of being successful.  The term sheet (also posted on SEDAR) indicates the comission to the selling dealers is 6%, so lots of incentive for them to sell this.

I think we could see this upsized to $150 million from $125 million if the demand is there, plus the over-allotment amounts if it is sold out.  Makes sense for Renewables to put more mnoey in the bank now if they can.

As an aside TWM will bank more than the current market capitalization on closing of the IPO ($180 million cash +$405 milllion Renewables shares vs. current market cap at $1.30 around $440 million.  In addition TWM will be re-imbursed around $25 million for prework on the renewable diesel project ( I think this is extra to the $180 million cash).


Below is a link to the Renewables marketing document posted on SEDAR

https://www.sedar.com/GetFile.do?lang=EN&docClass=33&issuerNo=00052722&issuerType=03&projectNo=03251738&docId=5008879

[fauxtomato]

Yeah, in either cash or LCFS credits I think? (going from memory) Guess it's part of the capex for the project which LCFS will own 100%. Will be interesting to see what net debt at TWM looks like at the end of Q3. A variety of 'clean energy' institutional funds could make the IPO a success: we've all seen the market for trendy but not necessarily economic companies the last tought