PVS.PR.I Settles Firm On Good Volume

Partners Value Split Corp. did not issue a press release today on their site regarding the settlement of PVS.PR.I, although there is a notice on Bloomberg:

Partners Value Split Corp. (the “Company”) announced today the completion of its previously announced issue of 6,000,000 Class AA Preferred Shares, Series 11 (the “Series 11 Preferred Shares”) at an offering price of $25.00 per Series 11 Preferred Share, raising gross proceeds of $150,000,000. The Series 11 Preferred Shares carry quarterly fixed cumulative preferential dividends representing a 4.75% annualized yield on the offering price and have a final maturity of October 31, 2025. The Series 11 Preferred Shares have been listed and posted for trading on the Toronto Stock Exchange under the symbol PVS.PR.I. The net proceeds of the offering will be used to partially fund the redemption of the Company’s Class AA Preferred Shares, Series 6.

Prior to the closing of the offering, the Company subdivided the existing capital shares held by Partners Value Investments Inc. so that there are an equal number of preferred shares and capital shares outstanding.

I have also received a copy of a NYSE/ICE press release that states:

The Toronto Stock Exchange reports that Partners Value Split Corp.’s Class AA preferred shares, Series 11, will be listed at 5:01 p.m. on Oct. 5, 2020, for trading at the open on Oct. 6, 2020. According to the TSX, the listing will cover six million Series 11 shares to be issued in a public offering at $25 per share, pursuant to the terms of a prospectus supplement dated Sept. 29, 2020. The Series 11 shares will trade under the symbol PVS.PR.I, in Canadian dollars and under Cusip No. 70214J 86 3.

The TSX reports that the company will pay quarterly dividends on the Series 11 shares on or about March 7, June 7, Sept. 7 and Dec. 7 of each year at an annual dividend rate of $1.1875 per share. The initial dividend payment of 47.5 cents per Series 11 share will be payable on March 7, 2021, covering the period from the closing of the offering to Feb. 28, 2021.

According to the TSX, the Series 11 shares may be redeemed by the company at any time on or after Oct. 31, 2023, and before Oct. 31, 2025 (the redemption date), at a price that, prior to Oct. 31, 2024, will equal $25.50 per share plus accrued and unpaid dividends. The redemption price will decline by 50 cents per share on Oct. 31, 2024. All Series 11 shares outstanding on the redemption date will be redeemed for a cash amount equal to the lesser of $25 plus accrued and unpaid dividends, and the net asset value per unit.

Notwithstanding the first sentence of the previous paragraph, the company may redeem Series 11 shares before Oct. 31, 2023, for $26 per share plus accrued and unpaid dividends if, and will not redeem Series 11 shares before Oct. 31, 2023, unless: (i) capital shares have been retracted; or (ii) there is a takeover bid for the Brookfield Asset Management Inc. shares and the board of directors of the company determines that such bid is in the best interest of the holders of the capital shares.

PVS.PR.I is a SplitShare, 5-Year, 4.75%, announced 2020-9-25. It will be tracked by HIMIPref™ and has been added to the SplitShare subindex.

The long first coupon might lead to some interesting trade possibilities close to the ex-dividend date!

Vital statistics are:

Maturity Type : Hard Maturity
Maturity Date : 2025-10-31
Maturity Price : 25.00
Evaluated at bid price : 24.95
Bid-YTW : 4.80 %

Leave a Reply

You must be logged in to post a comment.