BAM Split Corp has entered into a bought-deal refunding the BNA.PR.A, which pays 6.25% and matures 2010-9-30, but is redeemable at par commencing 2010-10-1.
Issue: BAM Split Corp. Cumulative Class AA preferred shares, Series 4
Size: 5-million shares (= $125-million)
Dividend: 7.25% paid quarterly (=$0.453125 quarterly, =$1.8125 p.a.). First coupon payable Sept. 7 for $0.26318, based on closing July 9.
Redemption: Will be redeemed 2014-7-9 at lesser of $25.00 or NAV. Optional redemption at $26.00 at any time – company may redeem early only if Capital Units retracted or there is a takeover bid for BAM.A
Retraction: Into Debentures. No Cash Retractions (except that the 2014-7-9 counts as a retraction for analytical purposes)! Debs pay interest of 7.35%, same maturity and – I PRESUME – are senior to prefs. Check the prospectus when available.
Update: BNA Press Release