Q: what do you think about today's $850 million medium term notes offering
https://www.capitalpower.com/media/media_releases/capital-power-announces-850-million-medium-term-note-offering/
https://www.capitalpower.com/media/media_releases/capital-power-announces-850-million-medium-term-note-offering/
5i Research Answer:
We would not consider it overly eventful. CPX is financing two recent acquisitions. The rates on the notes, 5.38% and 5.93%, we would consider 'decent' in light of the current yield curve. CPX already has $3.8B in debt, but the acquisitions will enhance cash flow, and the sector can typically support a high debt level due to the stability of cash flows.