Canadian General Investments, Limited has announced:
that it has provided notice to holders of its $75,000,000 3.90% Cumulative Redeemable Class A Preference Shares, Series 3 (the “Series 3 Shares”) that in accordance with the terms of the Series 3 Shares it will redeem all of the issued and outstanding Series 3 Shares on June 10, 2016 (the “Redemption Date”), for a price of $25.00 per Series 3 Share plus all accrued and unpaid dividends (from and including the last scheduled dividend payment date, March 15, 2016, to, but excluding, the Redemption Date, and being in the amount of $0.23240 per share).
The issue would have become retractible at 25.00 on June 15, so this is something of a pre-emptive redemption.
Update, 2016-6-10: They have now announced that they have:
completed the previously announced redemption of its $75,000,000 3.90% Cumulative Redeemable Class A Preference Shares, Series 3. This redemption was in accordance with the terms of the Series 3 shares.
The aggregate amount of $75,697,200 (including accrued and unpaid dividends from March 15, 2016 to, but excluding, June 10, 2016) was funded primarily through CGI’s recently announced $75,000,000 secured credit facility with a Canadian chartered bank. The credit facility is a non-revolving, three-year fixed rate facility that bears interest at 2.28% per annum to be paid quarterly.
CGI has engaged in a leverage strategy since its first issuance of Class A preference shares in 1998 in an effort to enhance returns to common shareholders.
Today is ex-dividend day. It seems thatt some (poor junior?) broker left a standing bid at 25.14 for a very large order. Gave me a chance to liquidate in advance a large number of my CGI.PR.C shares at a premium, while still retaining my right to the final dividend.
If you are hold any CGI.PR.C, you may wish to quickly verify if this bid is still there and liquidate all your outstanding shares at this nice premium!
I don’t believe you’re right.
The redemption price includes the accrued dividend, implying that it will not be paid separately.
There is a press release regarding the dividend for CGI.PR.D, but nothing equivalent for CGI.PR.C.
Well that’s a bummer… I thought that they meant that the dividend that would be paid on the redemption day would be adjusted to reflect the shorter period (June 10 vs. June 15), not that there would be no ex-dividend date as such. I wish that the language were clearer in their press releases.
I guess that the “poor junior borker” who still has the very large outstanding bid will have the last laugh.
See the update above. The accrued dividend was $0.2324 / share.