I previously announced that AIM.PR.C would reset at 6.01%, basing the report on Aimia’s press release. At that time, I observed:
It is of interest to note that AIM.PR.C’s reset dividend of 6.01% implied a Government of Canada 5-Year bond yield of 1.810%, whereas the two other issues resetting today, AQN.PR.D and PPL.PR.Q both implied a Canada yield of 1.811%.
…
OK, it’s only a discrepancy of 0.001%, or $0.00025 dividend per annum per share, but I’m still going to query their Investor Relations department.
Aimia Investor Relations now informs me:
4.20 + 1.81100 (GCAN5YR) is how we calculate it which is equal to 6.01100 which is rounded in the release to 6.01%.
As and when an exact dividend amount is declared/announced, you will be able to use the exact dividend amount (which we normally give to five digits as you can see from our Feb 25th release regarding past dividends) on the basis of the pref share at $25 to verify the rate used.
AIM.PR.C is a FixedReset, 6.25%+420, that commenced trading 2014-1-15 after being announced 2014-1-6. The extension was announced 2019-2-26. The issue is tracked by HIMIPref™ but relegated to the Scraps-FixedReset (Discount) subindex on credit concerns.
I have expressed a preliminary view that holders of AIM.PR.C should retain their holdings and not convert to FloatingResets; a final recommendation will be provided in the next few days.
This entry was posted on Wednesday, March 6th, 2019 at 6:28 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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Correction: AIM.PR.C To Reset At 6.011%
I previously announced that AIM.PR.C would reset at 6.01%, basing the report on Aimia’s press release. At that time, I observed:
Aimia Investor Relations now informs me:
AIM.PR.C is a FixedReset, 6.25%+420, that commenced trading 2014-1-15 after being announced 2014-1-6. The extension was announced 2019-2-26. The issue is tracked by HIMIPref™ but relegated to the Scraps-FixedReset (Discount) subindex on credit concerns.
I have expressed a preliminary view that holders of AIM.PR.C should retain their holdings and not convert to FloatingResets; a final recommendation will be provided in the next few days.
This entry was posted on Wednesday, March 6th, 2019 at 6:28 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.