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Atlantic Power Corporation Message Board

  • avecennui2000 avecennui2000 Jan 9, 2014 5:51 PM Flag

    It is all about the debt

    If someone can suggest how they are going to refi the mega-maturities approaching, please step up
    If it happens the cost will be considerable
    I think bankruptcy makes more sense-long term

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    • Maybe your due diligence is to read seeking alfalfa articles. This company is very far from insolvent so BK will not happen. They have $170M at 9/30 and are generating $45M cash each quarter (after the dividend). Apparently you did not bother to add up the maturities

      Here you go... $170 + 45 *3 - 190 = $115M (Aug 2014 ) $115 + 45*4 - 150 = $145 (Aug 2015)

      By 2018 when the largest near-term maturity of $460 is due, they should have $610 available to pay the maturity (assuming no refinance) so they will have $150M still after this maturity and all this assuming no improvement in operations or additional revenue coming on line. This also ignores that they have $119M restricted cash for the purpose of collateral/repayment and an unused $150M line of credit. I'm sick of this insolvency argument so please #$%$ unless you have some brilliant insight contrary to the facts.
      The debt is easily manageable, I would offer that you are more likely to go bankrupt shorting this than the company is.

      From the latest filing:
      Senior unsecured notes, due July 2014 190.0 190.0 5.9%
      Series A senior unsecured notes, due August 2015 150.0 150.0 5.9%
      Series B senior unsecured notes, due August 2017 75.0 75.0 6.0%
      Senior unsecured notes, due 2018 $ 460.0 $ 460.0 9.0%
      Piedmont construction loan, due 2013 76.6(1) 127.4 Libor plus 3.5% - Will likely be refi'd

 
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