Terms of the issue (Class A Series 31) are:
Dividend: Non-cumulative, 4.7% on $25.00 p.v. is $1.1750
- $26.00, 2012-1-31 – 2013-1-30
- $25.75, 2013-1-31 – 2014-1-30
- $25.50, 2014-1-31 – 2015-1-30
- $25.25, 2015-1-31 – 2016-1-30
- $25.00, 2016-1-31 +
DBRS: Pfd-1 (low)
S&P: P-1 (low)
There will be 16-million shares outstanding; underwriters have a greenshoe option for an additional 2-million shares. It’s a bought deal.
The terms of this issue make it a reasonably close match to CM.PR.H, issued 2005-3-10, paying $1.20, call schedule commencing 2001-3-30, closing 2006-11-3 at $25.80-89
|Price due to short-term||0.09||0.10|
|Price due to long-term||0.52||0.48|
|Price due to error||0.02||0.01|
|Price due to Credit Spread (Low)||-0.54||-0.49|
|Price due to Liquidity||1.58||1.58?|
Basically, the thing looks pretty good … priced to move! I’ll also note that it yields 10bp more (at issue) than the recently issued RY.PR.C, in terms of PRE-TAX DIVIDENDS, which is about right considering that the credit spread for “Low” is 11bp AFTER TAX.
This issue has been entered into HIMIPref™ with the temporary security code P50007.