PrefBlog

Issue: Dundee Corporation Cumulative 5-Year Rate Reset First Preference Shares Series 2

Size: $100-million (=4-million shares) plus greenshoe $15-million (=600,000 shares)

Dividends: 6.75% on par value to first Exchange Date, then resets to 5-Year Canada +410bp. Dividends are cumulative. First dividend $0.49469 payable 2009-12-31.

Exchange Dates: 2014-9-30 and every five years thereafter.

Convertible: Every Exchange Date to and from Series 3, which pay 3-month Bills + 410, reset quarterly.

Redeemable: Every Exchange Date at 25.00. There is also a Special Redemption Right. The Series 3 Floaters are redeemable every Exchange Date at 25.00, at all other times 25.50, and also have a Special Redemption Right.

Special Redemption Right: If anything comes up that would allow the preferred shareholders to vote (e.g., an amalgamation) then the company has a redemption right: $26.25 if redeemed before 2010-9-30; redemption price declines by $0.25 annually until 2014-9-30; redeemable at $25.00 thereafter. Series 3 Floaters are redeemable at 25.00 in such an instance.

Credit Ratings: S&P: P-3; DBRS: Pfd-3(low)

Closing: 2009-9-15

Update: It is my understanding that due to strong demand the deal has been increased to 4.6-million shares (=$115-million) plus a 0.6-million share greenshoe (=$15-million).

This entry was posted on Tuesday, August 25th, 2009 at 11:16 am and is filed under New Issues. 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.