On June 2, 2016 Gibson closed a $330 mm issue of equity ($230 mm) and convertible debentures ($100 mm). In our view, the issue allows Gibson to either fully finance its capital expenditures to YE2017 with cash now on hand; alternatively it can use its $500 mm revolving credit facility for new construction or tuck-in acquisitions as appropriate. The issue does dilute our existing base somewhat and we have reduced our 12-month target price by 4%, from $20.50 to $19.75/share.
02 Jun 2016
Raises $330 mm Capital, Increases Market Capitalization by 13%
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Raises $330 mm Capital, Increases Market Capitalization by 13%
Gibson Energy Inc. (GEI:TSE) | 0 0 1.5% | Mkt Cap: 2,392m
- Published:
02 Jun 2016 -
Author:
Steven I. Paget -
Pages:
5
On June 2, 2016 Gibson closed a $330 mm issue of equity ($230 mm) and convertible debentures ($100 mm). In our view, the issue allows Gibson to either fully finance its capital expenditures to YE2017 with cash now on hand; alternatively it can use its $500 mm revolving credit facility for new construction or tuck-in acquisitions as appropriate. The issue does dilute our existing base somewhat and we have reduced our 12-month target price by 4%, from $20.50 to $19.75/share.