BIG.PR.D Upgraded To Pfd-2 by DBRS

DBRS has announced that it:

) has today upgraded the rating of Class D Preferred Shares, Series 1 (the Preferred Shares) issued by Big 8 Split Inc. (the Company) to Pfd-2 from Pfd-2 (low).

Dividends received from the Portfolio are used to pay fixed cumulative quarterly distributions to holders of the Preferred Shares, yielding 4.50% per annum on the initial issue price of $10.00. The Capital Shares receive excess dividend income after the Preferred Share distributions and other Company expenses have been paid. Based on the current dividend yield on the Portfolio, the Preferred Share dividend coverage ratio is approximately 1.8 times, and as such there is no grind on the portfolio. In order to generate additional returns, the Company has the ability to engage in securities lending.

Downside protection available to the Preferred Shares consists of the net asset value of the Capital Shares. As of November 3, 2016, the downside protection was approximately 58.9%.

BIG.PR.D is not tracked by HIMIPref™, but more information can be obtained via the company’s page maintained by its sponsor. With slightly less than 1.2-million Units outstanding, the fund is simply too small for investment on an active basis. The issue was last mentioned on PrefBlog when Timbercreek took over sponsorship of the fund.

Leave a Reply

You must be logged in to post a comment.