Q: Now that the spin off has been approved, which of the two entities do you prefer for an investment? Or do each have their strengths and you like both but for different objectives (if yes, what type of portfolio does each belong in?).
Is one likely to carry the debt burden more than the other?
Thank you as always!
Is one likely to carry the debt burden more than the other?
Thank you as always!
5i Research Answer:
We will likely lean to South Bow for better growth potential, but we have until the fall to think about this. We think both can be owned, either in an RRSP or cash account. Dividends are expected to be split 86% TRP and 14% South Bow. We do not have the exact debt split right now.