reid wrote:Does this mean that the shares that I already own have been devalued without any benefit to the shareholders. It just looks like a lot of extra risk.
AltaRed wrote:As I understand it, the new equity issue will pay for the Keystone project (amongst others perhaps). It is thus indeed each person's own assessment whether this equity issue is accretive or not (whether Keystone improves TRP's corporate financial metrics or not will not be known until Keystone is fully operational).
What I don't like is the equity issue was priced at $33 rather than, at say, at $40 six months ago. On that basis alone, I would consider it dilutive. The timing is bad but TRP probably could not wait any longer to obtain the capital to fund the project.
retireat50 wrote:Started a position today. Would have preferred under $30, but c'est la vie. Only thing I'm unsure about is how a low interest rate environment would impact their rate base???
Shakespeare wrote:The utilities will likely get hammered if interest rates go up sharply, not only because their borrowing costs will rise
JaydoubleU wrote:That having been said, I think the FED will be forced to tolerate higher inflation + lower interest rates in order to prop up the economy and reduce that ridiculous debt.
arthur wrote:How safe is that generous dividend, and if they wanted to raise cash, cut the dividend to 3%
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