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  • Jul 13th, 2018 8:29 am
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Member
Sep 23, 2010
234 posts
38 upvotes
TORONTO
The convertible debentures seem pretty bad for retail investors. Unnecessarily complicated and hard to take advantage of the benefit of partially funding your commitment. I consider the stock from time to time but it seems really poorly managed and any upside is limited given the likelihood of more government sales into strength. Once the government is out then it might be worth another look.
Deal Fanatic
Nov 24, 2013
5085 posts
1691 upvotes
Kingston, ON
Asheron wrote:
Jul 20th, 2017 9:54 am
The convertible debentures seem pretty bad for retail investors. Unnecessarily complicated and hard to take advantage of the benefit of partially funding your commitment. I consider the stock from time to time but it seems really poorly managed and any upside is limited given the likelihood of more government sales into strength. Once the government is out then it might be worth another look.
Has ON sold its final planned stake or no? I think they're intending on stopping at 60% ownership (though they reserve the capacity to change their minds, of course).
Newbie
User avatar
Jun 26, 2012
48 posts
16 upvotes
Toronto
Mike15 wrote:
Jul 20th, 2017 3:05 pm
Has ON sold its final planned stake or no? I think they're intending on stopping at 60% ownership (though they reserve the capacity to change their minds, of course).
They sold the final planned stake in May. The Ontario government currently owns about 47% which will be reduced by the few percentage points when the convertible debentures are converted. Wynne claims ownership will not drop below 40%.
Deal Addict
Aug 27, 2009
1198 posts
309 upvotes
Oakville
"Energy regulator orders Hydro One to cut administrative budget by $30 million over two years"
https://www.thestar.com/business/person ... years.html

“The OEB shares the concerns of ... (those) who question whether Hydro One has adequately demonstrated that the significant increases in compensation costs associated with the parent company’s transformation will produce outcomes that utility customers value,” the OEB decision said.

It also expressed concern that Hydro One has stopped making progress toward bringing executive compensation levels down to the market median and those efforts have “now reversed.” The regulator also said the company’s total compensation amounts are likely understated because not all items of Hydro One compensation were included in its rate hike request."




Investing in an operation managed by the gov't reminds me of that old adage: "If you lie down with dogs, you will get up with fleas"
Deal Addict
User avatar
Aug 28, 2012
1671 posts
714 upvotes
Kanata, ON
How many are holding this stock long? I've had it since IPO, but we're currently at a 52- week low. only sitting +6% overall (plus dividends). Wondering if I should cut it loose now with all the negative news Hydro One is getting and the soon-to-be mud slinging about the Liberal mis-management of corporations like this as we approach the election.
Deal Addict
User avatar
Sep 10, 2003
1559 posts
126 upvotes
Hamilton
MarvinMartian wrote:
Jan 16th, 2018 10:04 am
How many are holding this stock long? I've had it since IPO, but we're currently at a 52- week low. only sitting +6% overall (plus dividends). Wondering if I should cut it loose now with all the negative news Hydro One is getting and the soon-to-be mud slinging about the Liberal mis-management of corporations like this as we approach the election.
Same here, I unloaded the majority of my position at a slight loss last week for 22$ pps. Wynne at some point will do another public offering at a discount price and drive it down further just like last time!
Deal Addict
Aug 17, 2008
1382 posts
644 upvotes
"Fair Hydro Trust" multi tranche (senior and subordinated) bond issue.

Ontario will borrow and "rebate" Ont consumers via this vehicle.

DBRS Provisional Ratings and Press release: https://www.dbrs.com/research/321879/db ... 18-1-notes
Moody's Provisional Rating Report: https://www.moodys.com/research/Moodys- ... -PR_378442

Institutional Roadshows: Jan 29-Feb 1 various Canadian cities
Syndicate leads, bookrunners and co-managers have been assigned.
Deal Fanatic
Nov 24, 2013
5085 posts
1691 upvotes
Kingston, ON
MrMom wrote:
Jan 23rd, 2018 5:00 pm
"Fair Hydro Trust" multi tranche (senior and subordinated) bond issue.

Ontario will borrow and "rebate" Ont consumers via this vehicle.

DBRS Provisional Ratings and Press release: https://www.dbrs.com/research/321879/db ... 18-1-notes
Moody's Provisional Rating Report: https://www.moodys.com/research/Moodys- ... -PR_378442

Institutional Roadshows: Jan 29-Feb 1 various Canadian cities
Syndicate leads, bookrunners and co-managers have been assigned.
Note, technically this isn't a debt issue by H. This is how the province is funding its rebate to H customers which is administered by H, but not material to H's income statement or balance sheet.
Deal Addict
Aug 17, 2008
1382 posts
644 upvotes
This is a securitization by any other name. OPG is the "financial services manager." OPG is retaining the sub debt and only the Senior tranche is for sale.

From the Final Short Form Prospectus;

"the FHPA Debt is ultimately recoverable through amounts charged to electricity consumers. OPG will control the Financing Entities and will provide management and financial services to the Financing Entities to implement the financing plan."

"In addition, it is expected that OPG will acquire a portion of the FHPA Debt, which is anticipated to consist of subordinated debt. A significant portion of the Company’s investments in the FHPA Debt are expected to be funded through equity investments in OPG by the Province, with a portion of the investments to be funded from the Company’s available funds, including all or a portion of the proceeds of any offerings of Notes."


Your tax dollars at work. The Street thanks you.
Images
  • fao-debt-refinancing.png
Deal Addict
Aug 17, 2008
1382 posts
644 upvotes
They're back...

Fair Hydro Trust in the market and expected to price this week.

Issue detail: 400mm 3.52% May 15/38 @ $100.002 private placement
Last edited by MrMom on Apr 18th, 2018 3:25 pm, edited 1 time in total.

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