Atlantic Power pays down debt and increases earnings

              Yes,as is the train in the caption, Atlantic Power is picking up steam.It announced on October19 that it has repriced two loans at a reduced interest rate;it has repriced it's senior secured term loan and it's senior secured revolving credit facility.The interest rate has come down by 75 basis points.This is the second repricing since April 2016 and has reduced 150 basis points on these loans.This will produce interest savings of $4 million in 2018 and $33 million over the life of the loans.However this will not show up in the third or fourth quarter.
        Reduced Project Debt
    Also ATP repaid $55 million of it's project debt on it's Piedmont facility.It used cash on hand and the proceeds of it's Global Adjustment Decision given back from the Ontario government.Annual interest savings will be $8 million here.Earlier, ATP announced that it would be paying down debt by $150 million in 2017 but in fact total repayment will now be $166 million.ATP was especially interested in paying down it's Piedmont debt as it was charging  8%interest.There were interest penalties but ATP paid them to remove this debt from it's books.Atlantic Power says that it has saved $100 million alone from restructuring and interest savings.
              The Effect on Adjusted EBITDA
               Atlantic Power's prospects were covered in a blog on Blogdaleup (Wordpress) on May 9, 2017 and it stated that guidance for 2017 will be raised from $225-$240 million to $250 -$265 million.Earnings per share will come in at $2.20- $2.35 not $1.95 -$2.10 per share as originally guided.This announcement will ensure that the prediction comes true.ATP says that Piedmont alone will add $9 to $10 million to adjusted EBITDA but with the new interest savings $12 million is more likely.If this prediction comes true and further evidence will be given on the next quarter's report(due on November 9) then the price/earnings ratio for Atlantic Power will be the lowest of all utilities at about 1.5.This makes Atlantic Power a screaming buy and likely the train will keep chugging up the hill towards $4 by the end of 2017 and $5 in 2018.Investors will see when the next quarter's report comes out.
                      

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