July 25, 2014

Algonquin Power & Utilities Corporation, proud issuer of AQN.PR.A and AQN.PR.D, was confirmed at Pfd-3(low) today by DBRS:

APUC’s non-consolidated key financial metrics are in line with the current rating profile. Non-consolidated debt-to-capital has remained minimal (0% as of March 31, 2014) and APUC intends to maintain debt at the HoldCo level well below the 20% threshold. In addition, APUC’s financial profile is also supported by the small size of preferred dividends relative to the cash flow available to the HoldCo. For the year ended December 31, 2013, preferred dividends totalled $5.4 million, while estimated cash flow available to service these dividends totalled approximately $105 million, allowing the remaining cash to service common dividends and partially fund capital expenditure needs.

It was a mixed day for the Canadian preferred share market today, with PerpetualDiscounts off 1bp, FixedResets down 7bp and DeemedRetractibles gaining 5bp. Volatility was low, with two of the three issues mentioned being high-volatility Floaters. Volume was very low.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 3.07 % 3.06 % 19,563 19.52 1 0.4115 % 2,584.9
FixedFloater 4.16 % 3.40 % 28,148 18.65 1 0.0438 % 4,167.5
Floater 2.86 % 2.96 % 46,347 19.84 4 -0.2992 % 2,768.5
OpRet 4.02 % -4.01 % 79,133 0.08 1 0.1177 % 2,722.2
SplitShare 4.25 % 3.85 % 50,019 4.01 6 -0.0347 % 3,120.6
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.1177 % 2,489.1
Perpetual-Premium 5.52 % -5.09 % 82,653 0.09 17 0.0300 % 2,432.7
Perpetual-Discount 5.23 % 5.08 % 105,690 15.24 20 -0.0149 % 2,584.5
FixedReset 4.40 % 3.59 % 195,658 8.59 77 -0.0712 % 2,555.6
Deemed-Retractible 4.98 % -1.40 % 121,058 0.09 43 0.0546 % 2,554.8
FloatingReset 2.66 % 2.16 % 93,176 3.85 6 -0.1904 % 2,514.0
Performance Highlights
Issue Index Change Notes
BAM.PR.B Floater -1.52 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 17.55
Evaluated at bid price : 17.55
Bid-YTW : 3.01 %
PWF.PR.P FixedReset -1.11 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 22.71
Evaluated at bid price : 23.12
Bid-YTW : 3.40 %
PWF.PR.A Floater 1.20 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 20.30
Evaluated at bid price : 20.30
Bid-YTW : 2.58 %
Volume Highlights
Issue Index Shares
Traded
Notes
GWO.PR.N FixedReset 103,249 Scotia crossed 40,000 at 21.40; Desjardins crossed 56,200 at the same price.
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.35
Bid-YTW : 4.75 %
GWO.PR.P Deemed-Retractible 77,290 TD crossed blocks of 30,000 and 45,000, both at 25.80.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2020-03-31
Maturity Price : 25.25
Evaluated at bid price : 25.70
Bid-YTW : 5.09 %
POW.PR.G Perpetual-Premium 76,100 TD crossed blocks of 30,000 and 45,000, both at 25.72.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-15
Maturity Price : 25.00
Evaluated at bid price : 25.76
Bid-YTW : 5.12 %
TD.PF.A FixedReset 72,500 TD crossed 50,000 at 25.28.
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 23.23
Evaluated at bid price : 25.28
Bid-YTW : 3.61 %
SLF.PR.A Deemed-Retractible 54,125 Desjardins crossed 49,200 at 24.20.
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.15
Bid-YTW : 5.24 %
BNS.PR.P FixedReset 52,100 TD crossed 50,000 at 25.50.
YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-04-25
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 2.83 %
There were 16 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
TD.PR.P Deemed-Retractible Quote: 26.08 – 26.55
Spot Rate : 0.4700
Average : 0.2743

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-08-24
Maturity Price : 25.75
Evaluated at bid price : 26.08
Bid-YTW : -11.11 %

GWO.PR.F Deemed-Retractible Quote: 25.75 – 26.20
Spot Rate : 0.4500
Average : 0.2620

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2014-08-24
Maturity Price : 25.00
Evaluated at bid price : 25.75
Bid-YTW : -23.69 %

IAG.PR.F Deemed-Retractible Quote: 26.05 – 26.49
Spot Rate : 0.4400
Average : 0.2755

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2018-03-31
Maturity Price : 25.25
Evaluated at bid price : 26.05
Bid-YTW : 5.05 %

BAM.PR.K Floater Quote: 17.60 – 18.00
Spot Rate : 0.4000
Average : 0.2599

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 17.60
Evaluated at bid price : 17.60
Bid-YTW : 3.00 %

BAM.PR.B Floater Quote: 17.55 – 17.95
Spot Rate : 0.4000
Average : 0.2697

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 17.55
Evaluated at bid price : 17.55
Bid-YTW : 3.01 %

PWF.PR.P FixedReset Quote: 23.12 – 23.45
Spot Rate : 0.3300
Average : 0.2080

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2044-07-25
Maturity Price : 22.71
Evaluated at bid price : 23.12
Bid-YTW : 3.40 %

Leave a Reply

You must be logged in to post a comment.