August 16, 2018

Apparently there’s another “mini-tender” offer being made by TRC Capital:

TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) has been notified of an unsolicited mini-tender offer by TRC Capital Corporation (TRC Capital) to purchase up to 2,500,000 common shares of TransCanada, representing approximately 0.28 per cent of TransCanada’s outstanding common shares at a price of CDN $55.35 per common share. TransCanada does not endorse this unsolicited mini-tender offer.

Shareholders are cautioned that the mini-tender offer has been made at a 4.32 per cent discount to the closing price of TransCanada’s common shares on the Toronto Stock Exchange on August 14, 2018, the last trading day before the mini-tender offer was announced.

Any person considering tendering to the offer should consult his or her financial advisor.

TransCanada does not endorse TRC Capital’s unsolicited mini-tender offer and is not associated with TRC Capital, the mini-tender offer, or the offer documentation. TRC Capital has made similar unsolicited mini-tender offers for shares of other companies.

The Financial Post did a piece on a similar offer a few years back for Enbridge stock (emphasis added):

Shareholders sometimes accept a below-market mini tender to avoid paying brokerage commissions for trading their shares and are therefore willing to accept a discount. However, a CSA advisory notes this is a very limited circumstance.

“These are bad news, I would say,” University of Calgary finance professor Ari Pandes said, calling mini-tender offers an “unscrupulous and unethical tactic.”

He said mini tenders often catch investors “off-guard” and cause them to “push the panic button so that some investors decide to sell.”

“The important thing is for the companies to get on top of it quickly,” Pandes said. He said companies should warn their shareholders not to accept the mini-tenders before retail investors, who might not do their homework, accept the offer.

Lorne Albaum, a Toronto securities lawyer who heads TRC Capital, did not respond to a request for comment.

The practice is discussed in CSA Staff Notice 61-301, issued in 1999.

Well, I won’t be doing any business with Lorne Albaum, I can tell you that much! Nor, I hope, with any entity that has done business with him!

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 0.00 % 0.00 % 0 0.00 0 0.1757 % 3,092.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 0.1757 % 5,674.0
Floater 3.49 % 3.72 % 50,197 17.99 4 0.1757 % 3,270.0
OpRet 0.00 % 0.00 % 0 0.00 0 0.0866 % 3,214.8
SplitShare 4.57 % 4.75 % 48,396 4.83 5 0.0866 % 3,839.2
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 0.0866 % 2,995.5
Perpetual-Premium 5.62 % -10.55 % 56,809 0.09 10 -0.0157 % 2,913.7
Perpetual-Discount 5.40 % 5.52 % 55,889 14.59 25 0.0881 % 2,994.0
FixedReset 4.30 % 4.78 % 118,165 3.91 107 0.0656 % 2,574.1
Deemed-Retractible 5.13 % 5.93 % 61,351 5.39 26 -0.0951 % 2,980.5
FloatingReset 3.43 % 3.77 % 34,789 5.70 7 0.0456 % 2,841.5
Performance Highlights
Issue Index Change Notes
GWO.PR.R Deemed-Retractible -1.37 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.27
Bid-YTW : 7.10 %
TRP.PR.J FixedReset -1.18 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-31
Maturity Price : 25.00
Evaluated at bid price : 26.00
Bid-YTW : 3.91 %
BAM.PR.K Floater -1.14 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 17.40
Evaluated at bid price : 17.40
Bid-YTW : 3.76 %
EMA.PR.H FixedReset 1.11 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-08-15
Maturity Price : 25.00
Evaluated at bid price : 25.43
Bid-YTW : 4.54 %
PWF.PR.A Floater 1.60 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 21.28
Evaluated at bid price : 21.55
Bid-YTW : 2.99 %
Volume Highlights
Issue Index Shares
Traded
Notes
NA.PR.E FixedReset 179,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 22.82
Evaluated at bid price : 24.06
Bid-YTW : 4.94 %
BMO.PR.W FixedReset 93,600 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 22.58
Evaluated at bid price : 23.04
Bid-YTW : 4.83 %
PWF.PR.K Perpetual-Discount 70,800 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 22.12
Evaluated at bid price : 22.40
Bid-YTW : 5.56 %
NA.PR.S FixedReset 67,530 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 22.86
Evaluated at bid price : 23.50
Bid-YTW : 4.96 %
TD.PF.H FixedReset 66,152 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-31
Maturity Price : 25.00
Evaluated at bid price : 26.02
Bid-YTW : 3.58 %
POW.PR.G Perpetual-Premium 56,128 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-15
Maturity Price : 25.00
Evaluated at bid price : 25.29
Bid-YTW : 5.35 %
There were 19 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BAM.PR.X FixedReset Quote: 19.05 – 19.60
Spot Rate : 0.5500
Average : 0.3504

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 19.05
Evaluated at bid price : 19.05
Bid-YTW : 5.04 %

TRP.PR.J FixedReset Quote: 26.00 – 26.39
Spot Rate : 0.3900
Average : 0.2416

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-31
Maturity Price : 25.00
Evaluated at bid price : 26.00
Bid-YTW : 3.91 %

W.PR.M FixedReset Quote: 25.90 – 26.35
Spot Rate : 0.4500
Average : 0.3142

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-10-15
Maturity Price : 25.00
Evaluated at bid price : 25.90
Bid-YTW : 4.15 %

GWO.PR.R Deemed-Retractible Quote: 22.27 – 22.65
Spot Rate : 0.3800
Average : 0.2548

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 22.27
Bid-YTW : 7.10 %

BAM.PR.K Floater Quote: 17.40 – 17.78
Spot Rate : 0.3800
Average : 0.2588

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-08-16
Maturity Price : 17.40
Evaluated at bid price : 17.40
Bid-YTW : 3.76 %

IAG.PR.I FixedReset Quote: 25.25 – 26.25
Spot Rate : 1.0000
Average : 0.8806

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2023-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.25
Bid-YTW : 4.74 %

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