CHP.UN Acquiring REF.UN
I'm a share holder of REF.UN, but not CHP.UN. I have two options - get cash (i.e. sell now or wait until deal closes and get $53.75 or get 4.2835 units of CHP.UN for each REF.UN unit I hold).
Looking at CHP.UN it's been around since ~2014 and the aFFO has been growing with time. The distribution has also been growing and the overall yield is higher than REF.UN. However I think they carry quite a bit more debt and are raising debt to finance this acquisition. I don't know what the metric is for either company at present, but at close after acquisition CHP.UN will carry a debt / ebitda of ~ 8X and and a debt to total assets of 0.45.
For shareholders of either company, what do you guys think of the deal?