DFN.PR.A Re-opening Closes

Dividend 15 Split Corp. has announced that it:

has completed its Offering of 841,476 Preferred Shares at $10.35 per share for aggregate gross proceeds of $8,709,276. The Preferred Shares will begin trading on the Toronto Stock Exchange on June 6, 2007 under the symbol DFN.PR.A.

In a related news release regarding the stock dividend that triggered the issue, the company stated:

special capital gains cash dividend of $0.50 per Class A share and a special capital gains stock dividend of $1.75 per Class A share. The dividends on the Class A share are payable June 6, 2007 to shareholders on record as of June 4, 2007.
…
The Class A share reinvestment price will be $19.55 per share.

I had been worried that the issue of units would dilute the asset coverage of the prefs substantially, but these fears were not realized. A reinvestment price of $19.55 ties in nicely with the May 31 NAV of $29.79 for the unit (which includes $10.00 for the prefs), given that the record date of June 4 implies an ex-date of May 31. Both values agree well with the May 15 NAV of $31.95, given a total dividend of $2.25.

So … DFN.PR.A continues to have very good asset coverage, currently just under 3.0:1 which, if anything, exceeds the normal range for an issue rated Pfd-2 by DBRS.

This entry was posted on Tuesday, June 5th, 2007 at 1:18 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.

One Response to “DFN.PR.A Re-opening Closes”

  1. PrefBlog » Blog Archive » DFN.PR.A Announces Reopening via Rights Issue says:
    April 23, 2008 at 7:06 pm

    […] This is similar to the Reopening of DFN.PR.A last June. […]

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