Zero bullishness on renewals of expiring PPA assets for the most part.
Note attached.
Thx for sharing!
Note says "We would expect a buyer to be able to realize overhead cost synergies and utilize the over ~$500 million of NOLs (as at the end of 2019)."
I typically assume that NOLs cannot be used in most change of control transactions. I know there are exceptions. Anyone do any work to substantiate that an acquirer of AT would be able to use their NOLs?
And this is from Q1 '17 Transcript:
Rupert M. Merer - National Bank Financial, Inc., Research Division - Analyst
In your presentation, you have some disclosure on the NOLs and the expiry schedule, so you've got about $619 million there. It says some of the
NOLs are subject to limitations on their use. But just wondering what options you may be considering to monetize those NOLs or what may be
available to you?
James J. Moore - Atlantic Power Corporation - CEO, President and Director
They are harder to monetize than they were, I forget how many years back, but there's been tightening up on people's ability to sell NOLs or to
monetize them externally. We're primarily looking at our NOLs as use against internal operating cash. Anything else, Terry?
Terrence Ronan - Atlantic Power Corporation - CFO, Principal Financial & Accounting Officer, EVP and Corporate Secretary
No, I think we're looking to utilize against income in the future.
Rupert M. Merer - National Bank Financial, Inc., Research Division - Analyst
Okay. So it could be supportive on the economics on any growth projects in the future?
Terrence Ronan - Atlantic Power Corporation - CFO, Principal Financial & Accounting Officer, EVP and Corporate Secretary
That's right.
