June 18 - Canaccord Adams raised Inter Pipeline Fund (IPL_u.TO) to "buy" from "hold," following the fund's C$173 million equity financing and its long-term transport service agreement for Imperial Oil Resources' Kearl project.
Analyst Bob Hastings said that the fund's recent financing should meet the equity required for its Corridor pipeline expansion, Kearl pipeline, and other projects.
"Inter Pipeline expects the Distribution Reinvestment Purchase Plan (DRIP) plans to raise C$130 million annually. Consequently, the equity issue expected by investors is smaller and now out of the way, eliminating the overhang in the market," he wrote in a note to clients.
The analyst said the fund's 25-year take-or-pay agreement with Imperial will provide about C$27 million of stable incremental annual EBITDA and close to 10 Canadian cents a unit to annual cash flow, on completion of the project in late 2012.
Bob Hastings raised his target on the units of the company to C$9 from C$8.
Units of the company closed at C$8.48 Thursday on the Toronto Stock Exchange.
Analyst Bob Hastings said that the fund's recent financing should meet the equity required for its Corridor pipeline expansion, Kearl pipeline, and other projects.
"Inter Pipeline expects the Distribution Reinvestment Purchase Plan (DRIP) plans to raise C$130 million annually. Consequently, the equity issue expected by investors is smaller and now out of the way, eliminating the overhang in the market," he wrote in a note to clients.
The analyst said the fund's 25-year take-or-pay agreement with Imperial will provide about C$27 million of stable incremental annual EBITDA and close to 10 Canadian cents a unit to annual cash flow, on completion of the project in late 2012.
Bob Hastings raised his target on the units of the company to C$9 from C$8.
Units of the company closed at C$8.48 Thursday on the Toronto Stock Exchange.
