This BMO Field thing really irritates me, so I have sent the following eMail:<\/p>\n
Dear Mr. Ford, Ms. Doucette, Ms. Nash and Ms. DiNovo [my Mayor, Councillor, MP & MPP]<\/p>\n
I write to urge very close scrutiny of the proposed arrangement whereby the City, provincial government and federal government are being asked to invest $10-million each in leasehold improvements for BMO Field in Toronto.<\/p>\n
It has been claimed (link<\/a> ) that this represents “a pretty good healthy return on the $10 million”.<\/p>\n
I have made approximate calculations of the Internal Rate of Return based on figures published in the Toronto Star (link<\/a> ) and arrive at a figure of approximately 6.2%. While this certainly exceeds the rate available on twenty year bonds, it is far below the rule of thumb for equity and, I suspect, far below the rate of return expected by MLSE, which has been described as “really good” in the context of private equity investments (link<\/a> ) which have historically averaged more than double the IRR offered to the city ( link<\/a> )<\/p>\n
In addition, it will be noticed that there will be no return of the provincial and federal contributions, which will be lost completely. I wish to remind you all that it is all taxpayer money and for my part I am not too greatly concerned with the details of the route my money takes between my pocket and MLSE’s coffers.<\/p>\n
It is apparent that the City has been taken to the cleaners under the give-away splashed out by the previous city administration. The city’s gross undervaluation of naming rights allowed MLSE to make an instant profit from its investment (link<\/a> ) and in addition, the city’s current and projected receipts from the stadium and parking (roughly $500,000 p.a. to increase to $1.3-million p.a.) are laughable when compared to receipts on, for example, Ricoh Coliseum, estimated at $4-million p.a. (link<\/a> citing Peddie, Richard (2013). Dream Job. Harper Collins ).<\/p>\n
It is my understanding that MLSE wishes to extend the term of their lease in connection with their leasehold improvements, which is entirely understandable. I strongly urge that any such lease extension be examined with great care, with the City taking the opportunity to negotiate much higher payments by MLSE.<\/p>\n
Sincerely,<\/p><\/blockquote>\n
DBRS confirmed BRF at Pfd-3(high)<\/a>:<\/p>\n
BREP\u2019s business risk profile is in the BBB (high) range. The Company\u2019s output is highly contracted (93% of expected 2014 generation) with investment-grade counterparties, with an above-average weighted-average duration of approximately 18 years. In addition, BREP\u2019s significantly diversified portfolio of 193 hydro-electric generating stations mitigates the Company\u2019s exposure to hydrology and operational risk at each facility. However, over the last year, BREP has repeatedly purchased hydroelectric facilities that are exposed to the wholesale pricing environment in North America, including the White Pine and Black Bear facilities. Although DBRS expects BREP to attempt to secure long-term contracts for these assets, should BREP\u2019s contracted output fall below 80%, the Company\u2019s business risk profile could be negatively affected.<\/p>\n
BREP\u2019s financial risk profile is based on its deconsolidated credit metrics and is reflective of a BBB (high) rating because of the Company\u2019s prudent financing strategy. BREP finances its assets with mostly non-recourse project level debt. With hydrology returning to a long-term average, BREP\u2019s deconsolidated EBITDA-to-interest and deconsolidated cash flow-to-debt ratios returned to ranges reasonable for its current rating. While BREP\u2019s deconsolidated debt-to-capital ratio in 2013 was slightly above the 20% threshold, DBRS expects BREP to maintain this ratio below the 20% threshold as the Company closes the acquisition of Safe Harbor and Bord G\u00e1is with a prudent mix of non-recourse project-level debt and equity.<\/p><\/blockquote>\n
Brookfield Renewable Power Preferred Equity Inc. is the proud issuer of BRF.PR.A, BRF.PR.C, BRF.PR.E and BRF.PR.F.<\/p>\n
It was a mixed day for the Canadian preferred share market today, with PerpetualDiscounts up 4bp, FixedResets off 6bp and DeemedRetractibles gaining 3bp. Volatility was average. Volume was on the low side of average.<\/p>\n