PrefBlog

Co-operators General Insurance has announced (via CCN Matthews) that:

it has decided to redeem all of its 4 million Series A Shares on July 2, 2007 (with an effective date of June 30, 2007). The redemption price for each Series A Share will be $25.00 plus declared, but unpaid dividends of $0.34375 per share. The redemption of the Series A Shares is subject to approval of the Superintendent of Financial Institutions.

I’m glad of it! It may be just my bookkeeperish soul interfering with innovative finance, but the terms of this issue (paying “Greater of 90% of index and Flat Rate 5.5%”) were unique and hard to value as part of a homogeneous class. Sometimes, it was difficult even to determine dividend dates!

Update: I now observe that the PrefInfo description of this issue did not account for the once-every-five-years redemption at $25.00 – it only noted the at-all-other-times redemption at $25.50. My apologies – this has been corrected. The prospectus for this issue, dated May 29, 1997, is available through SEDAR.

Update 2007-6-21: Cooperators, with all their usual concern for precision, predictability and the convenience of those who lend them money has decided to change the redemption procedure, under the guise of a confirmation:

Co-operators General Insurance Company (“Co-operators General” or the “Company”) confirmed today the arrangements relating to the payment for the previously announced dividend on the Class E Preference Shares, Series A (the “Series A Series”) (TSX: CCS.PR.A) and the redemption of all of the Series A Shares. Notice of redemption was mailed to registered holders on May 31, 2007.

The dividend in the amount of $0.34375 per Series A Shares for the quarter ending June 30, 2007 was previously declared and will be payable on July 3, 2007 (with an effective date of June 30, 2007) to holders of record on June 1, 2007.

The redemption price of $25.00 per Series A Shares will be payable on July 3, 2007 (with an effective date of June 30, 2007) upon presentation of certificates and required letters of transmittal. The declared dividend of $0.34375 per Class A Share for the quarter ended June 30, 2007 will not be included in the redemption price as such dividend will be paid separately to holders of record on June 1, 2007 immediately prior to payment of the redemption price. The Company does not expect to declare any further dividends on the Series A Shares.

To me, that looks just a tiny little bit different from what was announced before … but you be the judge!

This entry was posted on Wednesday, May 23rd, 2007 at 1:21 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.