Archive for the ‘US Pay’ Category

New Issue: ENB US-Pay FixedReset, 4.40%+282

Thursday, September 19th, 2013

Enbridge Inc. has announced:

that it has entered into an agreement with a group of underwriters to sell eight million Cumulative Redeemable Preference Shares, Series 5 (the “Series 5 Preferred Shares”) at a price of US$25.00 per share for distribution to the public. Closing of the offering is expected on September 27, 2013.

The holders of Series 5 Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of US$1.10 per share, payable quarterly on the 1st day of March, June, September and December, as and when declared by the Board of Directors of Enbridge, yielding 4.40 per cent per annum, for the initial fixed rate period to but excluding March 1, 2019. The first quarterly dividend payment date is scheduled for December 1, 2013. The dividend rate will reset on March 1, 2019 and every five years thereafter at a rate equal to the sum of the then five-year United States Government bond yield plus 2.82 per cent. The Series 5 Preferred Shares are redeemable by Enbridge, at its option, on March 1, 2019 and on March 1 of every fifth year thereafter.

The holders of Series 5 Preferred Shares will have the right to convert their shares into Cumulative Redeemable Preference Shares, Series 6 (the “Series 6 Preferred Shares”), subject to certain conditions, on March 1, 2019 and on March 1 of every fifth year thereafter. The holders of Series 6 Preferred Shares will be entitled to receive quarterly floating rate cumulative dividends, as and when declared by the Board of Directors of Enbridge, at a rate equal to the sum of the then 3-month US Treasury Bill rate plus 2.82 per cent.

Enbridge has granted to the underwriters an option, exercisable at any time up to 48 hours prior to the closing of the offering, to purchase up to an additional 2 million Series 5 Preferred Shares at a price of US$25.00 per share.

The offering is being made only in Canada by means of a prospectus supplement to the base shelf prospectus of the Corporation dated June 6, 2013. Proceeds will be used to partially fund capital projects, to reduce existing indebtedness and for other general corporate purposes of the Corporation and its affiliates.

The syndicate of underwriters is led by CIBC, RBC Capital Markets, Scotiabank and TD Securities Inc.

This joins Enbridge’s other US-Pay FixedResets:

ENB US-Pay FixedResets
Ticker Initial Coupon Issue Reset Spread Closing Quote,
2013-9-19
ENB.PR.U 4.00% 305 24.45-50
ENB.PF.U 4.00% 315 24.25-40
ENB.PR.V 4.00% 314 24.13-15

Given what’s available on the market,this offering looks grossly over-priced! Fortunately for the company, its underwriters and the underwriters’ salesmen, most people will stop paying attention after the “4.40%” part.

As this issue is USD denominated, it will not be tracked by HIMIPref™.

FSV.PR.U: Some To Be Redeemed, The Rest Converted

Thursday, April 4th, 2013

FirstService Corporation has announced:

plans to simplify its capital structure by eliminating all of its 7% Cumulative Preference Shares, Series 1 (the “Preferred Shares”) and to pay a dividend on its Subordinate Voting Shares and Multiple Voting Shares (together, the “Common Shares”). All amounts are in US dollars.

Currently, there are 5,230,634 Preferred Shares outstanding. The Preferred Shares will be eliminated on May 3, 2013 (the “Redemption Date”) in a two-step process. First, there will be a partial redemption for cash of 1,569,190 Preferred Shares (representing 30% of the outstanding Preferred Shares) on a pro rata basis for $25.00 per share plus accrued and unpaid dividends of $0.1582 per share, net of any tax required to be deducted or withheld by FirstService. Second, immediately following the partial redemption, the balance of 3,661,444 Preferred Shares (representing 70% of the initially outstanding Preferred Shares) will be converted by FirstService into Subordinate Voting Shares. A Notice of Redemption and Conversion has been mailed to holders of Preferred Shares in accordance with the terms of Preferred Shares.

Partial Redemption of Preferred Shares

On May 3, 2013, 1,569,190 Preferred Shares will be redeemed by FirstService for $25.00 per share plus accrued and unpaid dividends of $0.1582 per share, net of any tax required to be deducted or withheld by FirstService (the “Redemption Price”), for expected total redemption consideration of $39.5 million. The accrued and unpaid dividends reflect the period of March 31, 2013 to the day prior to the redemption date. The Preferred Shares to be redeemed will be selected on a pro rata basis (disregarding fractions).

Conversion of Preferred Shares Remaining after Partial Redemption

On May 3, 2013, immediately after the partial redemption of the Preferred Shares, the remaining 3,661,444 Preferred Shares will be converted into fully paid, non-assessable and freely tradable Subordinate Voting Shares of FirstService. The number of Subordinate Voting Shares to be received for each Preferred Share converted is determined in accordance with a formula set out in the terms of the Preferred Shares, wherein the Redemption Price of each Preferred Share is divided by 95% of the weighted average trading price of the Subordinate Voting Shares traded on NASDAQ for the twenty consecutive trading days ending on the fourth day prior to the conversion date. No fractional Subordinate Voting Shares will be issued. FirstService will satisfy any such fractional interest with a payment based on the market price of such fractional interest. FirstService expects that, based on current trading prices, approximately 3.0 million Subordinate Voting Shares will be issued on the conversion, resulting in a total of approximately 31.8 million Subordinate Voting Shares outstanding following the conversion. The Preferred Shares will be de-listed from trading on the TSX at the close of trading on the Redemption Date.

The formal notice of redemption and conversion is also available on FirstService’s website.

FSV.PR.U was last mentioned on PrefBlog when DBRS put the rating on Review-Developing in 2008. DBRS discontinued the rating in 2010.

The common stock, FSV, is now trading in the range of $34.00, implying that preferred shareholders will receive approximately 0.75 subordinate voting shares per preferred – not bad, since the preferreds were distributed as a stock dividend on the basis of one preferred for every five SVS in 2007.

FSV.PR.U has not been tracked by HIMIPref™.

New Issue: ENB FixedReset, 4.00%+314 USD

Monday, March 18th, 2013

Enbridge Inc. has announced:

that it has entered into an agreement with a group of underwriters to sell eight million Cumulative Redeemable Preference Shares, Series 1 (the “Series 1 Preferred Shares”) at a price of US$25.00 per share for distribution to the public. Closing of the offering is expected on March 27, 2013.

The holders of Series 1 Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of US$1.00 per share, payable quarterly on the 1st day of March, June, September and December, as and when declared by the Board of Directors of Enbridge, yielding 4.00 per cent per annum, for the initial fixed rate period to but excluding June 1, 2018. The first quarterly dividend payment date is scheduled for June 1, 2013. The dividend rate will reset on June 1, 2018 and every five years thereafter at a rate equal to the sum of the then five-year United States Government bond yield plus 3.14 per cent. The Series 1 Preferred Shares are redeemable by Enbridge, at its option, on June 1, 2018 and on June 1 of every fifth year thereafter.

The holders of Series 1 Preferred Shares will have the right to convert their shares into Cumulative Redeemable Preference Shares, Series 2 (the “Series 2 Preferred Shares”), subject to certain conditions, on June 1, 2018 and on June 1 of every fifth year thereafter. The holders of Series 2 Preferred Shares will be entitled to receive quarterly floating rate cumulative dividends, as and when declared by the Board of Directors of Enbridge, at a rate equal to the sum of the then 3-month US Treasury Bill rate plus 3.14 per cent.

Enbridge has granted to the underwriters an option, exercisable at any time up to 48 hours prior to the closing of the offering, to purchase up to an additional two million Series 1 Preferred Shares at a price of US$25.00 per share.

The offering is being made only in Canada by means of a prospectus. Proceeds will be used to partially fund capital projects, to reduce existing indebtedness and for other general corporate purposes of the Corporation and its affiliates.

The syndicate of underwriters is led by Scotiabank, CIBC, RBC Capital Markets, and TD Securities Inc.

This issue will not be tracked by HIMIPref™, which follows only CAD preferreds.

Update, 2013-3-20: Rated Pfd-2(low) by DBRS.

Update, 2013-9-19: Ticker is ENB.PR.V

NXY.PR.U, NXY.PR.A To Be Redeemed

Tuesday, February 26th, 2013

Nexen Inc. has announced:

that CNOOC Limited has completed its acquisition of the Company. Pursuant to the plan of arrangement (the “Arrangement”) holders of Nexen common shares will receive cash proceeds of US $27.50, without interest, and holders of Nexen preferred shares will receive cash proceeds of CAD $26.00, plus accrued and unpaid dividends up to, but excluding, the closing date of the Arrangement, without interest.

Kevin Reinhart will continue as CEO of Nexen and will maintain responsibility for all of Nexen’s operations. The Company’s Calgary headquarters will continue to be responsible for managing all of Nexen’s existing assets as well as CNOOC Limited’s North and Central American assets.

Nexen’s common and preferred shares are expected to be delisted from the Toronto Stock Exchange (the “TSX”) in a few trading days. Nexen’s common shares are expected to cease being traded on the NYSE prior to the market opening on February 26, 2013, and will subsequently be delisted.

With respect to NXY.PR.U, they have also announced:

that, in accordance with the terms of the indenture (the “Trust Indenture”) governing Nexen’s outstanding US$460 million aggregate principal amount of 7.35% Subordinated Notes due 2043 (the “Subordinated Notes”), Nexen has exercised its right to redeem all of the outstanding Subordinated Notes for a cash amount equal to $1,000 per $1,000 principal amount of Subordinated Notes, plus accrued and unpaid interest up to, but excluding, the redemption date. Nexen will complete the redemption of such Subordinated Notes on March 28, 2013 (the “Redemption Date”). Following the Redemption Date, holders of Subordinated Notes will have no further rights or entitlements under the Subordinated Notes or the Trust Indenture other than to receive the redemption price described above. Prior to the Redemption Date, Nexen will deposit with Deutsche Bank Trust Company Americas (the “Trustee”), the trustee under the Trust Indenture, funds sufficient to pay the total redemption amount payable to holders of redeemed Subordinated Notes.

A redemption notice will be sent to the registered holder of the Subordinated Notes today by the Trustee.

The Subordinated Notes are listed and traded on the TSX and NYSE under the symbols NXY.PR.U and NXY.PRB, respectively. Nexen intends to delist the Subordinated Notes from the TSX and NYSE as soon as possible following the Redemption Date.

The Plan of Arrangement with respect to NXY.PR.A has been reported on PrefBlog.

The particulars of NXY.PR.U were also discussed on PrefBlog.

AX.PR.U Settles Firm on Good Volume

Tuesday, September 18th, 2012

Artis Real Estate Investment Trust has announced:

that it has closed its previously announced marketed public offering (the “Financing”) of Cumulative Rate Reset Preferred Trust Units, Series C, (“the Series C Units”). Pursuant to the Financing, Artis issued 3.0 million Series C Units at a price of US$25 per Series C Unit for gross proceeds to Artis of US$75,000,000.

The Financing was underwritten by a syndicate led by RBC Capital Markets, CIBC and Macquarie Capital Markets Canada Ltd.

Artis intends to use the net proceeds from the Financing to repay indebtedness, fund future acquisitions, and for general trust purposes.

AX.PR.U is a FixedReset, 5.25%+446, announced September 11. The issue will not be tracked by HIMIPref™.

The issue traded 286,270 shares today in a range of 24.90-01 before closing at 25.00-01, 5×50.

New Issue: AX FixedReset 5.25%+446 US PAY

Tuesday, September 11th, 2012

Artis Real Estate Investment Trust (TSX: AX.UN) has announced:

a marketed public offering (the “Financing”) of approximately US$50 million Cumulative Rate Reset Preferred Trust Units, Series C (the “Series C Units”) at a price of US$25 per Series C Unit. The Financing is being led by RBC Capital Markets, CIBC and Macquarie Capital Markets Canada Ltd. (the “Underwriters”). Artis has also granted the Underwriters an over-allotment option, exercisable at any time up to 30 days after the closing of the Financing, to purchase additional Series C Units, up to an amount equal to 15% of the number of Series C Units sold pursuant to the Financing. The Financing will be priced in the context of the market with the final terms of the Financing to be determined at the time of pricing.

The Series C Units will pay fixed cumulative preferential distributions, payable on the last day of March, June, September and December of each year, as and when declared by the board of trustees of Artis, for the initial approximately five and a half-year period ending March 31, 2018. The first quarterly distribution, if declared, shall be payable on December 31, 2012. The distribution rate will be reset on March 31, 2018 and every five years thereafter at a rate equal to the sum of the then five-year United States Government bond yield and a spread which will be set upon pricing of this Financing. The Series C Units are redeemable by Artis, at its option, on March 31, 2018 and on March 31 of every fifth year thereafter.

Holders of Series C Units will have the right to reclassify all or any part of their Series C Units as Cumulative Floating Rate Preferred Trust Units, Series D (the “Series D Units”), subject to certain conditions, on March 31, 2018 and on March 31 of every fifth year thereafter. Such reclassification privilege may be subject to certain tax considerations (to be disclosed in the prospectus supplement). Holders of Series D Units will be entitled to receive a floating cumulative preferential distribution, payable on the last day of March, June, September and December of each year, as and when declared by the board of trustees of Artis, at a rate equal to the sum of the then 3-month United States Government Treasury Bill yield plus a spread which will be set upon pricing of this Financing.

The Financing is being made pursuant to the REIT’s base shelf prospectus dated June 15, 2012. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

Artis intends to use the net proceeds from the Financing to repay indebtedness, fund future acquisitions, and for general trust purposes.

They also announced:

that is has priced its previously announced marketed public offering (the “Financing”) of Cumulative Rate Reset Preferred Trust Units, Series C (the “Series C Units”). Artis will issue 3.0 million Series C Units at a price of US$25 per Series C Unit for gross proceeds to Artis of US$75,000,000.

The Financing is being led by RBC Capital Markets, CIBC and Macquarie Capital Markets Canada Ltd. (the “Underwriters”).

The Series C Units will pay fixed cumulative preferential distributions of US$1.3125 per unit per annum, yielding 5.25% per annum, payable on the last day of March, June, September and December of each year, as and when declared by the board of trustees of Artis, for the initial approximately five and a half-year period ending March 31, 2018. The first quarterly distribution, if declared, shall be payable on December 31, 2012 and shall be US$0.3740 per unit, based on the anticipated closing of the offering of Series C Units of September 18, 2012. The distribution rate will be reset on March 31, 2018 and every five years thereafter at a rate equal to the sum of the then five year United States Government bond yield and 4.46%. The Series C Units are redeemable by Artis, at its option, on March 31, 2018 and on March 31 of every fifth year thereafter.

Holders of Series C Units will have the right to reclassify all or any part of their Series C Units as Cumulative Floating Rate Preferred Trust Units, Series D (the “Series D Units”), subject to certain conditions, on March 31, 2018 and on March 31 of every fifth year thereafter. Such reclassification privilege may be subject to certain tax considerations (to be disclosed in the prospectus supplement).

Holders of Series D Units will be entitled to receive a floating cumulative preferential distribution, payable on the last day of March, June, September and December of each year, as and when declared by the board of trustees of Artis, at a rate equal to the sum of the then 3-month United States Government Treasury Bill yield plus a spread of 4.46%.

The Financing is being made pursuant to the REIT’s base shelf prospectus dated June 15, 2012.

The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The Financing is expected to close on or about September 18, 2012 and is subject to regulatory approval.

Artis intends to use the net proceeds from the Financing to repay indebtedness, fund future acquisitions, and for general trust purposes.

It is my understanding that the shares are not rated and that there is no current intention to rectify this matter.

ALA.PR.U Weak on Good Volume

Wednesday, June 6th, 2012

AltaGas has announced:

it has closed its previously announced public offering of 8,000,000 Cumulative Redeemable Five-Year Fixed Rate Reset Preferred Shares, Series C (the “Series C Preferred Shares”) at a price of US$25.00 per Series C Preferred Share (“the Offering”) for aggregate gross proceeds of US$200 million. The previously announced underwriters’ option to purchase an additional 2,000,000 Series C Preferred Shares at a price of US$25.00 per share was exercised in full.

The Offering was first announced on May 29, 2012 when AltaGas entered into an agreement with a syndicate of underwriters, co-led by RBC Capital Markets, CIBC and Scotiabank.

Net proceeds will be used to reduce outstanding indebtedness and for general corporate purposes.

The Series C Preferred Shares will commence trading today on the Toronto Stock Exchange under the symbol ALA.PR.U.

ALA.PR.U is a FixedReset, US-Pay, 4.40%+358, announced May 29. The issue traded 402,860 shares today in a range of 24.35-60 before closing at 24.45-49, 20×1.

ALA.PR.U will not be tracked by HIMIPref™ as there are insufficient USD issues available to form a coherent universe.

New Issue: ALA US-Pay FR 4.40%+358

Tuesday, May 29th, 2012

AltaGas has announced:

that it will issue 6,000,000 Cumulative Redeemable Five-Year Fixed Rate Reset Preferred Shares, Series C (the “Series C Preferred Shares”), at a price of US$25.00 per Series C Preferred Share (“the Offering”) for aggregate gross proceeds of US$150 million on a bought deal basis. The Series C Preferred Shares will be offered to the public through a syndicate of underwriters, co-led by RBC Capital Markets, CIBC and Scotiabank.

Holders of the Series C Preferred Shares will be entitled to receive a cumulative quarterly fixed dividend for the initial period ending on but excluding September 30, 2017 (the “Initial Period”) at an annual rate of 4.40%, payable on the last day of March, June, September and December, as and when declared by the Board of Directors of AltaGas. The first quarterly dividend payment is payable on October 1, 2012 and shall be US$0.3473 per Series C Preferred Share. The dividend rate will reset on September 30, 2017 and every five years thereafter at a rate equal to the sum of the then five-year US government bond yield plus 3.58%. The Series C Preferred Shares are redeemable by AltaGas, at its option, on September 30, 2017 and on September 30 of every fifth year thereafter.

Holders of Series C Preferred Shares will have the right to convert all or any part of their shares into Cumulative Redeemable Floating Rate Preferred Shares, Series D (the “Series D Preferred Shares”), subject to certain conditions, on September 30, 2017 and on September 30 every fifth year thereafter. Holders of Series D Preferred Shares will be entitled to receive a cumulative quarterly floating dividend at a rate equal to the sum of the then three-month US treasury bill yield plus 3.58%, as and when declared by the Board of Directors of AltaGas.

The Offering is expected to close on or about June 6, 2012. Net proceeds will be used to reduce outstanding indebtedness and for general corporate purposes.

AltaGas has granted to the underwriters an option, exercisable in whole or in part at any time up to 48 hours prior to the closing time of the offering, to purchase an additional 2,000,000 Series C Preferred Shares at a price of US$25.00 per share.

The Series C Preferred Shares will be issued pursuant to a prospectus supplement that will be filed with securities regulatory authorities in Canada under AltaGas’ short form base shelf prospectus dated December 7, 2011. The Offering is subject to receipt of all necessary regulatory and stock exchange approvals.

Update, 2012-5-31:Rated Pfd-3 by DBRS.

Update, 2013-2-27: Trades as ALA.PR.U

ENB.PF.U Closes a Little Soft on Good Volume

Wednesday, May 23rd, 2012

Enbridge Inc. has announced:

it has closed its previously announced public offering of Cumulative Redeemable Preference shares, Series L (the “Series L Preferred Shares”) by a syndicate of underwriters led by Scotiabank, RBC Capital Markets, & TD Securities Inc. Enbridge issued 16 million Series L Preferred Shares for gross proceeds of US$400 million. The Series L Preferred Shares will begin trading on the TSX today under the symbol ENB.PF.U. The proceeds will be used for capital expenditures, to repay indebtedness and for other general corporate purposes.

ENB.PF.U is a FixedReset, US Pay, 4.00%+315, announced May 11. The issue traded 761,310 shares in a range of 24.80-95 before closing at 24.87-90, 20×15.

The issue will not be tracked by HIMIPref™; regrettably, there are not enough US-Pay issues available to form an analyzable universe.

New Issue: ENB FixedReset 4.00%+315 US PAY

Friday, May 11th, 2012

Enbridge Inc. has announced:

that it has entered into an agreement with a group of underwriters to sell eight million cumulative redeemable preference shares, series L (the “Series L Preferred Shares”) at a price of US$25.00 per share for distribution to the public. Closing of the offering is expected on May 23, 2012.

The holders of Series L Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of US$1.00 per share, payable quarterly on the 1st day of March, June, September and December, as and when declared by the Board of Directors of Enbridge, yielding 4.00 per cent per annum, for the initial fixed rate period to but excluding September 1, 2017. The first quarterly dividend payment date is scheduled for September 1, 2012. The dividend rate will reset on September 1, 2017 and every five years thereafter at a rate equal to the sum of the then five-year United States Government bond yield plus 3.15 per cent. The Series L Preferred Shares are redeemable by Enbridge, at its option, on September 1, 2017 and on September 1 of every fifth year thereafter.

The holders of Series L Preferred Shares will have the right to convert their shares into cumulative redeemable preference shares, series M (the “Series M Preferred Shares”), subject to certain conditions, on September 1, 2017 and on September 1 of every fifth year thereafter. The holders of Series M Preferred Shares will be entitled to receive quarterly floating rate cumulative dividends, as and when declared by the Board of Directors of Enbridge, at a rate equal to the sum of the then 3-month US Treasury Bill rate plus 3.15 per cent.

Enbridge has granted to the underwriters an option, exercisable at any time up to 48 hours prior to the closing of the offering, to purchase up to an additional 2 million Series L Preferred Shares at a price of US$25.00 per share.

The offering is being made only in Canada by means of a prospectus. Proceeds will be used to partially fund capital projects, to reduce existing indebtedness and for other general corporate purposes of the Corporation and its affiliates.

The syndicate of underwriters is led by Scotiabank, RBC Capital Markets, and TD Securities Inc.

Update: Issue size doubled to 16-million shares

Update, 2013-9-19: Ticker is ENB.PF.U