DBRS has announced that it:
has today upgraded the rating on the Class A Preferred Shares, Series 1 (the Class A Preferred Shares) issued by Global Champions Split Corp. (the Company) to Pfd-2 (high) from Pfd-2. The Company issued 2,000,000 Class A Preferred Shares at an issue price of $25.00 per preferred share and an equal number of capital shares (the Capital Shares) on March 7, 2013. The redemption date for the Class A Preferred Shares will be on or about July 31, 2019.
Net proceeds from the initial offering were used to invest in a portfolio of common shares of 15 international large capitalization companies (the Portfolio), which currently consists of 16 companies.
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Based on the latest dividend yield on the Portfolio and foreign exchange rates, the dividend coverage ratio is approximately 1.6 times. Holders of the Capital Shares are expected to receive all excess income after the Company’s expenses and the Class A Preferred Share distributions have been paid.
As at February 23, 2017, the downside protection available to the Class A Preferred Shares was approximately 65.5% based on the NAV of $72.42 after accounting for exchange rate adjustment.
Some particular strengths of the Company are the adequate diversification of the Portfolio with companies of strong credit quality and the consistency of dividend distributions of the companies in the Portfolio.
Considering the stability and growth of the downside protection as well as strong Portfolio metrics, DBRS has upgraded the rating on the Class A Preferred Shares issued by the Company to Pfd-2 (high) from Pfd-2.
GCS.PR.A is a SplitShare paying 4.00% eligible dividends, maturing July 31, 2019. It commmenced trading 2013-3-7 after a relatively long gestation period. With respect to the nature of the dividends, the company states:
For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, all dividends (and deemed dividends) paid by Global Champions branded split corporations to Canadian residents on our common and preferred shares after December 31, 2005 are designated as “eligible dividends.” Unless stated otherwise, all dividends (and deemed dividends) are designated as “eligible dividends” for the purposes of these rules.
GCS.PR.A is tracked by HIMIPref™ but relegated to the Scraps index on volume concerns.
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GCS.PR.A Upgraded to Pfd-2(high) by DBRS
DBRS has announced that it:
GCS.PR.A is a SplitShare paying 4.00% eligible dividends, maturing July 31, 2019. It commmenced trading 2013-3-7 after a relatively long gestation period. With respect to the nature of the dividends, the company states:
GCS.PR.A is tracked by HIMIPref™ but relegated to the Scraps index on volume concerns.
This entry was posted on Thursday, March 2nd, 2017 at 1:03 am 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.