Partners Value Split Corp. has released its Annual Report to December 31, 2014.
The company has the following issues outstanding: PVS.PR.A, PVS.PR.B, PVS.PR.C and PVS.PR.D.
Figures of interest are:
MER: I suggest it is best to include the amortization of share issue costs in MER – after all, this is a charge against the stated value of the company. Therefore, expenses were $382,000 (regular expenses) + $1,443,000 (amortization) = $1,825,000 for the on assets of $2.650-billion (see below) or 7bp p.a..
Average Net Assets: We need this to calculate portfolio yield and MER. There were negligible capital transactions, so we’ll just take the average of the beginning and end of period assets (including preferred shares) so: (3.108-billion + 2.191-billion)/2 = 2.650-billion
Underlying Portfolio Yield: Total Income of $40.1-million divided by average net assets of $2,650-million is 1.51% p.a..
Income Coverage: Net income of $39.760-million less amortization of $1.443-million is $38.317-million to cover senior preferred dividends of $26.097-million is 147%. However, I consider it prudent to include the $10-million stated entitlement of the Junior preferreds, even though none of this was actually paid in 2014 because the Juniors can be retracted at any time, which could prove embarrassing in times of extreme stress. So I’d say income coverage is 106%.
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PVS Annual Report, 2014
Partners Value Split Corp. has released its Annual Report to December 31, 2014.
The company has the following issues outstanding: PVS.PR.A, PVS.PR.B, PVS.PR.C and PVS.PR.D.
Figures of interest are:
MER: I suggest it is best to include the amortization of share issue costs in MER – after all, this is a charge against the stated value of the company. Therefore, expenses were $382,000 (regular expenses) + $1,443,000 (amortization) = $1,825,000 for the on assets of $2.650-billion (see below) or 7bp p.a..
Average Net Assets: We need this to calculate portfolio yield and MER. There were negligible capital transactions, so we’ll just take the average of the beginning and end of period assets (including preferred shares) so: (3.108-billion + 2.191-billion)/2 = 2.650-billion
Underlying Portfolio Yield: Total Income of $40.1-million divided by average net assets of $2,650-million is 1.51% p.a..
Income Coverage: Net income of $39.760-million less amortization of $1.443-million is $38.317-million to cover senior preferred dividends of $26.097-million is 147%. However, I consider it prudent to include the $10-million stated entitlement of the Junior preferreds, even though none of this was actually paid in 2014 because the Juniors can be retracted at any time, which could prove embarrassing in times of extreme stress. So I’d say income coverage is 106%.
This entry was posted on Sunday, May 10th, 2015 at 9:18 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.