odyd

TerraForm Power, Inc. (TERP)

778 posts in this topic

Any idea why GLBL is up while TERP is down (by about same percentage) on the news of closer ties with SUNE (I understand why SUNE is up). Shouldn't Global mirror Power's in reacting to this? 

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Both were down on Thursday, then both up Friday.  Was hoping for mirror performance to continue to enter GLBL as well (yield is 20%). 

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Looks like Moody's drop the rating on the debt and lower it more on TERP than GLBL.  For the most part those rating agencies influence value of debt, stirring things up in negative fashion.

Saga continues,

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It appears SUNE has paid $310M against the margin loan used for borrowing on First Wind assets in ratio to TERP's price. The pressure to sell TERP down to force money to escrow should be removed now. If selling some of the Indian assets takes place, and paying margin loan could be a signal money is coming, we could experience some interesting moves here.

SUNE is still risky concept, but more money SUNE can produce, better for TERP.

Stock goes ex-dividend on Nov 27th.

http://biz.yahoo.com/e/151123/sune8-k.html

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TERP looks very attractive at current levels, but picture painted by Moody's doesn't look very good. SUNE CFO becoming CEO of TERP is quite a conflict of interest IMO...on the other hand for Vivint acquisition, I am really sceptical if SUNE will be able to close this and hence the TERP obligation of buying 500MW each year might be not as relevant...also in the current situation I don't think Vivint can even do 500MW in a year...I think TERP debt (trading at 70ct) could be quite interesting at current levels!!

https://www.moodys.com/research/Moodys-downgrades-Terraform-Power-and-Terraform-Global-to-B2-CFR--PR_339505

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50 minutes ago, dk1 said:

SUNE CFO becoming CEO of TERP is quite a conflict of interest IMO

Yes I didn't like this reshuffling at all. It's like they want to prevent TERP from distancing itself from parent. Risk of buying from SUNE at bad terms now. Is this really ok behavior?

 

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16 minutes ago, disdaniel said:

yield is trading around 19% today--which is beyond insane

I'm adding more.

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