Category: Issue Comments

Quadravest has announced:

Dividend 15 Split Corp. II (the “Company”) is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and will also include TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp. and Raymond James.

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% on the issue price and the Class A Shares will be offered at a price of $8.75 per Class A Share to yield 13.71% on the issue price. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on September 8, 2014 was $9.18 and $10.19, respectively.

Since inception of the Company, the aggregate dividends paid on the Preferred Shares have been $4.05 per share and the aggregate dividends paid on the Class A Shares have been $8.40 per share, for a combined total of $12.45. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the secondary offering will be used by the Company to invest in an actively managed portfolio of dividend-yielding common shares which includes each of the 15 Canadian companies listed below:

Bank of Montreal	Enbridge Inc.	TELUS Corporation
The Bank of Nova Scotia	Manulife Financial Corp.	Thomson-Reuters Corporation
BCE Inc.	National Bank of Canada	The Toronto-Dominion Bank
Canadian Imperial Bank of Commerce	Royal Bank of Canada	TransAlta Corporation
CI Financial Corp.	Sun Life Financial Inc.	TransCanada Corporation

The Company’s investment objectives are:
Preferred Shares:
i. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price; and
ii. on or about December 1, 2019, to pay the holders of the Preferred Shares the original issue price of those shares.

Class A Shares:
i. to provide holders of the Class A Shares with regular monthly cash dividends initially targeted to be $0.10 per Class A; and
ii. on or about termination, to pay the holders of Class A Shares at least the original issue price of those shares.

The sales period of this overnight offering will end at 9:00 a.m. (EST) on September 10, 2014.

Lynx-eyed readers will find some amusement in the fact that they got their closing prices for the two classes reversed, even when using the word “respectively”.

The NAVPU was 17.43 as of September 8, so the Capital Units are trading at a nice premium to intrinsic value, which provides a great deal of incentive for the fund to issue more units.

DF.PR.A was last mentioned on PrefBlog when they released their 2014 Semi-Annual Report. They also got bigger last March. DF.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

Update, 2014-10-13: The offering was successful, according to a Quadravest announcement:

Dividend 15 Split Corp. II (the “Company”) is pleased to announce it has completed an overnight offering of 2,350,000 Preferred Shares and 2,350,000 Class A Shares. Total proceeds of the offering were $44.0 million, bringing the Company’s net assets to approximately $198.6 million. The shares will trade on the Toronto Stock Exchange under the existing symbols of DF.PR.A (Preferred shares) and DF (Class A shares).

The Preferred Shares were offered at a price of $10.00 per Preferred Share to yield 5.25% on the issue price and the Class A Shares were offered at a price of $8.75 per Class A Share to yield 13.71% on the issue price.

The offering was co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and also included Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp. and Raymond James.

The net proceeds of the secondary offering will be used by the Company to invest in an actively managed portfolio of dividend-yielding common shares which includes each of the 15 Canadian companies listed below:

Bank of Montreal	Enbridge Inc.	TELUS Corporation
The Bank of Nova Scotia	Manulife Financial Corp.	Thomson-Reuters Corporation
BCE Inc.	National Bank of Canada	The Toronto-Dominion Bank
Canadian Imperial Bank of Commerce	Royal Bank of Canada	TransAlta Corporation
CI Financial Corp.	Sun Life Financial Inc.	TransCanada Corporation

Scotia Managed Companies has announced:

BNS Split Corp. II (the “Company”) announced today that it has called 73,625 Preferred Shares for cash redemption on September 22, 2014 (in accordance with the Company’s Articles) representing approximately 10.35% of the outstanding Preferred Shares as a result of the special annual retraction of 150,950 Capital Shares by the holders thereof. The Preferred Shares shall be redeemed on a pro rata basis, so that each holder of Preferred Shares of record on September 18, 2014 will have approximately 10.35% of their Preferred Shares redeemed. The redemption price for the Preferred Shares will be $18.85 per share.

In addition, holders of a further 3,700 Capital Shares and 1,850 Preferred Shares have deposited such shares concurrently for retraction on September 22, 2014. As a result, a total of 150,950 Capital Shares and 75,475 Preferred Shares, or approximately 10.58% of both classes of shares currently outstanding, will be redeemed.

Holders of Preferred Shares that are on record for dividends but have been called for redemption will be entitled to receive dividends thereon which have been declared but remain unpaid up to but not including September 22, 2014.

Payment of the amount due to holders of Preferred Shares will be made by the Company on September 22, 2014. From and after September 22, 2014 the holders of Preferred Shares that have been called for redemption will not be entitled to dividends or to exercise any right in respect of such shares except to receive the amount due on redemption.

BNS Split Corp. II is a mutual fund corporation whose principal undertaking is to invest in common shares of The Bank of Nova Scotia. Capital Shares and Preferred Shares of BNS Split Corp. II are listed for trading on The Toronto Stock Exchange under the symbols BSC and BSC.PR.B respectively.

BSC.PR.B was last mentioned on PrefBlog when it was upgraded to Pfd-2 by DBRS. BSC.PR.B is tracked by HIMIPref™ but is relegated to the Scraps index on volume concerns.

Quadravest has announced:

Canadian Banc Corp. (the “Company”) announces that it will issue Rights to all Class A Shareholders thereby allowing existing shareholders to increase their investment in the Company. Each Class A Shareholder will be entitled to receive one Right for each Class A Share held as of the record date of August 25, 2014. Six Rights will entitle the holder to purchase a Unit consisting of one Class A Share at $14.18 and one Preferred Share at $10.00 for the total subscription price of $24.18. The Rights are exercisable at any time once issued and will expire at 5:00 p.m. (EST) on October 6, 2014.

The net proceeds from the subscription of Units will be used to acquire additional securities in accordance with the Company’s investment objectives. The exercise price is consistent with current trading prices and accretive to the most recently published net asset value per Unit. The offering is expected to increase the trading liquidity of the Company and reduce the management expense ratio.

Both the Preferred Shares and Class A Shares trade on the Toronto Stock Exchange (the “TSX”) under the symbol “BK.PR.A” and “BK” respectively. The Rights will be listed and will trade on the TSX until 12:00 noon (EST) on October 6, 2014. The Rights will be eligible for exercise on and following August 26, 2014.

The Company invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto-Dominion Bank.

Separately, in a review of the credit of six Split Share Corporations:

Of the six structured Preferred Share ratings updated today by DBRS, one has been upgraded and five have been confirmed. Equity performance has been strong over the past year, with the S&P/TSX Composite Index rising by 22.8% from July 31, 2013, to July 31, 2014. All six Issuers experienced increasing net asset values (NAVs) over that same period. Notwithstanding the positive performance over the past year, the ratings assigned to the many of the Preferred Shares continue to be constrained by distributions paid to holders of the Capital Shares, which depress NAVs and downside protection levels. Other key rating factors include the downside protection volatility in recent months, the credit quality and diversification of each Portfolio and the expected maturity date of the Preferred Shares of each Issuer.

One Preferred Share was upgraded, primarily based on the level and stability of the downside protection over the past year.

The upgrade was for BK.PR.A, which has a Unit Value of 24.16 as of 2014-8-29, implying Asset Coverage of 2.4+:1. It is now rated Pfd-3(high), one notch higher than the confirmation in 2013.

Brookfield Office Properties has announced:

that it intends to redeem all 11,500,000 of its outstanding Class AAA Preference Shares, Series L (TSX: BPO.PR.L), all of which are beneficially held by CDS & Co., as nominee of CDS Clearing and Depositary Services Inc., for cash on September 30, 2014. The redemption price for each such share is C$25.00. Holders of Series L shares on the record date of September 15, 2014 are entitled to receive the regular quarterly dividend of $0.42188 per share.

Notice of Redemption has been sent to CDS & Co. Payment of the redemption price will be made to all beneficial holders of the Series L Shares on or after September 30, 2014 through the facilities of CDS & Co.

This news comes after, but not necessarily due to, my post What’s Up With BPO.PR.L? and my eMail to Investor Relations. That eMail was answered, by the way:

Hello James,

Please see the press release issued today:

[LINK]

Regards,

As noted by Assiduous Reader and New Commenter adriandunn in the comments to my earlier post, trading was halted in the morning:

Sep 3, 2014

TORONTO, Sept. 3, 2014 /CNW/ – The following issues have been halted by IIROC:

Company: Brookfield Office Property Inc. PR series ‘L’

TSX Symbol: BPO.PR.L

Reason: Pending News

Halt Time (ET): 10:50 AM ET

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC)

Trading was resumed at 11:30am:

TORONTO, Sept. 3, 2014 /CNW/ – Trading resumes in:

Company: Brookfield Office Property Inc. PR series ‘L’

TSX Symbol: BPO.PR.L

Resumption: 11:30 AM ET

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC)

Assiduous Reader prefQC makes an interesting suggestion later in the comments to my earlier post:

Seems that if yesterday’s big purchaser fights it, he would definitely win (after all, the prospectus is legally binding). In that case, BPO may be forced to offer a “voluntary” redemption and keep the issue alive for another 5 years for those who want to keep it (my guess that would be most everybody). Given the low downside risk and (relatively) high upside reward, maybe this would be a good time to load up on BPO.PR.L??

Well … I dunno. If we go strictly by the timing of the press release, they missed both the redemption window and the reset window, so a judge would have to determine the ‘fairest’ way to resolve the problem. The market clearly expected redemption, so I suspect that would be the decision.

Another consideration is an unusual line in their press release:

Notice of Redemption has been sent to CDS & Co.

According to the prospectus:

A book entry only certificate representing the Series L Shares distributed hereunder will be issued in registered form only to CDS Clearing and Depository Services Inc. (“CDS”) or its nominee and will be deposited with CDS on the Closing Date. The Corporation understands that a purchaser of Series L Shares will receive only a customer confirmation from the registered dealer who is a CDS participant and from or through whom the Series L Shares are purchased. See “Book Entry Only System”.

So according to the official transfer agent, there is only one owner of shares, and BPO claims that this holder received a Notice of Redemption, although they don’t spell out exactly when. If it was before the thirty-day minimum notice, then presumably complainers will find themselves without a leg to stand on.

It is highly regrettable that Brookfield and its various subsidiaries have such a culture of contempt for their ultimate shareholders – much like the culture of contempt that the TSX has for its ultimate users – in that they take a very strict definition of Clients = CDS, full stop, (or in the case of the TSX, Clients = Brokerages, full stop). Remember the ticker change from BNA to PVS? I will bet a nickel that the attitude was and is … ‘We’ve notified our client – and that’s all we need to do’; the client being in this case CDS and in the ticker-change case, the Exchange. It is also very tempting to speculate that the officers of the various firms are useless drecks who refuse to take any initiative and don’t understand why they don’t get paid as much as Brookfield’s dealmakers. But that’s just speculation, of course.

Dundee Corporation has announced:

Further to Dundee Corporation’s (TSX: DC.A and DC.PR.B) (“Dundee” or the “Company”) news release dated August 26, 2014, the Company announces today the applicable dividend rates for its Cumulative 5‐Year Rate Reset First Preference Shares, Series 2 (“Series 2 Shares”) and its Cumulative Floating Rate First Preference Shares, Series 3
(“Series 3 Shares”).

With respect to any Series 2 Shares that remain outstanding on September 30, 2014, holders thereof will be entitled to receive fixed rate cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Dundee and subject to the provisions of the Business Corporations Act (Ontario). The dividend rate for the five‐year period commencing on September 30, 2014 to, but excluding September 30, 2019, will be 5.688%, being equal to the sum of the five‐year Government of Canada bond yield as at September 2, 2014, plus 4.10%, as determined in accordance with the terms of the Series 2 Shares.

With respect to any Series 3 Shares that may be issued on September 30, 2014, holders thereof will be entitled to receive floating rate cumulative preferential cash dividends on a quarterly basis, calculated on the basis of actual number of days elapsed in each quarterly floating rate period divided by 365, as and when declared by the Board of Directors of the Company and subject to the provisions of the Business Corporations Act (Ontario). The dividend rate for the three‐month period commencing on September 30, 2014 to, but excluding, December 31, 2014, will be 5.04%, being equal to the sum of the three‐month Government of Canada Treasury bill yield as at September 2, 2014, plus 4.10%, as determined in accordance with the terms of the Series 3 Shares.

Beneficial owners of Series 2 Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.m. (EDT) on September 15, 2014. Instructions of conversion are irrevocable.

Beneficial owners should direct any conversion inquiries to their broker or Dundee’s Registrar and Transfer Agent, Computershare Investor Services Inc., at 1‐800‐564‐6253.

It is difficult to formulate a recommendation regarding whether holders of DC.PR.B should convert. The two issues resulting after partial conversion will, of course, form a Strong Pair and may be analyzed with the Pairs Equivalency Calculator. Performing an analysis of all current FixedReset/FloatingReset pairs results in the following chart:

Click for Big

This chart was created with the assumed price of the new DC FloatingReset set to 25.22, the same as the price of DC.PR.B. According to this, the DC FloatingReset looks a little bit cheap … but not much. To get to the average Breakeven 3-Month Bill Yield of 1.67%, the price would only need to increase by $0.08, to 25.30.

One may, of course, make the argument that the time until the next Exchange Date is greater for DC.PR.B, therefore (given a projection of increasing policy rates) the breakeven rate should be higher, therefore the current price should be somewhat higher than 25.30 and therefore conversion should be favoured … but that’s a matter of opinion, informed or otherwise. I take no position on that – you’re on your own!

Another consideration is the fact that this will be the first Junk Floating Reset. In a logical world this shouldn’t make any difference, since the analysis rests on the idea that the credit quality of each element of the Strong Pair is precisely equal, but since when has the preferred share market been logical? If we look at the other pool of Strong Pairs, the pool that depends upon the prime rate and is predominantly junk (if you believe DBRS) or investment grade (if you believe S&P), one gets a set of break-even rates that implies a much faster increase in Prime, which one may sort-of assume will move in sort-of lockstep with three-month bill rates:

br>Click for Big

The average breakeven prime rate is 5.38%, a huge increase over the current 3% and much more than the increase in short-rates implied by extant FloatingResets. Looking at things very simply, if we say that the FixedFloater/Ratchet series of strong pairs implies a rate of 5.38%, 238bp over current, then adding 238bp to the 0.91% current three month bill rate means requiring a break-even 3-month-bill rate of 3.29%, which in turn implies a whopping price of 26.90 for the new DC FloatingReset.

I find none of this particularly convincing and think that holders should either convert or hold according to what makes sense for their own portfolios. Those with a taste for speculation, however, will find the conversion to the FloatingReset attractive, since there’s not much downside and potentially quite a bit of upside.

Dundee Corporation has announced:

that it does not intend to exercise its right to redeem any currently outstanding cumulative 5‐year rate reset first preference shares, series 2 (the “Series 2 Shares”) on September 30, 2014 and, as a result, subject to certain conditions, the holders of the Series 2 Shares have the right, at their option, to convert all or part of their Series 2 Shares on a one for one basis into Cumulative Floating Rate First Preference Shares, Series 3 (the “Series 3 Shares”) as at September 30, 2014. Holders who do not exercise their right to convert their Series 2 Shares into Series 3 Shares will retain their Series 2 Shares, unless automatically converted in accordance with the conditions below.

The foregoing conversions are subject to the conditions that: (i) if, after September 15, 2014, the Company determines that there would be less than 500,000 Series 2 Shares outstanding on September 30, 2014, then all remaining Series 2 Shares will automatically be converted into an equal number of Series 3 Shares on September 30, 2014, and (ii) alternatively, if the Company determines that there would be less than 500,000 Series 3 Shares outstanding on September 30, 2014, no Series 2 Shares will be converted into Series 3 Shares. In either case, Dundee will give written notice to that effect to holders of the Series 2 Shares affected by the preceding minimums on or before September 23, 2014.

The dividend rate applicable to the Series 2 Shares for the 5‐year period commencing on September 30, 2014 to, but excluding September 30, 2019, and the dividend rate applicable to the Series 3 Shares for the 3‐month period commencing on September 30, 2014 to, but excluding December 31, 2014, will be determined and announced by way of a news release on September 2, 2014.

Beneficial owners of Series 2 Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.m. (EDT) on September 15, 2014. Instructions of conversion are irrevocable.

Beneficial owners should direct any conversion inquiries to their broker or Dundee’s Registrar and Transfer Agent, Computershare Investor Services Inc., at 1‐800‐564‐6253.

DBRS has announced that it:

has today changed the trend on its ratings of Atlantic Power Limited Partnership’s (APLP) Issuer Rating (rated B (high)) and its Senior Unsecured Debt & Medium-Term Notes (rated B (high)) to Stable from Negative, and subsequently discontinued these ratings. DBRS has also changed the rating trend of Atlantic Power Preferred Equity Ltd.’s (APPE) Cumulative Preferred Shares (rated at Pfd-5 (high)) to Stable from Negative and has discontinued this rating.

The discontinuation of the ratings of APLP and APPE is due to the request of the issuers.

The company announced in May that:

Consistent with the objective of acting in the best interests of the Company, its shareholders and its other stakeholders, the Company, as also previously disclosed, is committed to evaluating a broad range of potential options. These potential options include further selected asset sales or joint ventures to raise additional capital for growth or potential debt reduction, the acquisition of assets, including in exchange for shares, the dividend level, as well as broader strategic options, including a sale or merger of the Company. The Company has engaged Goldman, Sachs & Co. and Greenhill & Co., LLC to assist the Company in its evaluation of these potential options. No assurance can be given as to how the evaluation of any such potential options may evolve. The Company does not intend to comment further on its evaluation of potential options until it otherwise deems further disclosure is appropriate or required.

This statement was repeated in the 14Q2 10Q.

14Q2 earnings were pretty dreary, with a loss of $0.49 per share. Somebody writing a round-up under the auspices of Sleek Money, whoever they are, claims:

A number of analysts have recently weighed in on AT shares. Analysts at Scotiabank reiterated a “sector underperform” rating on shares of Atlantic Power Corp in a research note on Thursday, June 26th. On a related note, analysts at Imperial Capital initiated coverage on shares of Atlantic Power Corp in a research note on Thursday, June 26th. They set an “outperform” rating and a $7.00 price target on the stock. Finally, analysts at National Bank Financial downgraded shares of Atlantic Power Corp from a “sector perform” rating to an “underperform” rating in a research note on Wednesday, June 25th. Five equities research analysts have rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $4.33.

S&P continues to rate the preferred shares at P-5 [Stable].

Atlantic Power Preferred Equity (a subsidiary that guarantees its parent’s debt) has two series of preferred shares outstanding: AZP.PR.A, a PerpetualDiscount, and AZP.PR.B, a FixedReset. Both are tracked by HIMIPref™; both are relegated to the Scraps index on credit concerns.

TD Securities has announced:

TDb Split Corp. (the “Company”) is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Priority Equity Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and will also include Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp. and Raymond James.

The Priority Equity Shares will be offered at a price of $10.20 per Priority Equity Share to yield 5.15% on the issue price and the Class A Shares will be offered at a price of $6.10 per Class A Share to yield 9.83% on the issue price. The closing price on the TSX of each of the Priority Equity Shares and Class A Shares on August 15, 2014 was $10.29 and $6.17, respectively.

Since inception of the Company, the aggregate dividends paid on the Priority Equity Shares have been $3.67 per share and the aggregate dividends paid on the Class A Shares have been $3.05 per share, for a combined total of $6.72. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the secondary offering will be used by the Company to invest in common shares of Toronto-Dominion Bank, a leading Canadian Financial institution.

XTD.PR.A was last mentioned on PrefBlog when it was entered the Protection Plan during the depths of the Credit Crunch.

XTD.PR.A is not tracked by HIMIPref™ since it is too small … but this can always change!

Post and headline corrected to reflect correct ticker, as pointed out by prefQC in the comments

Update, 2014-8-19: The offering was successful:

TDb Split Corp. (the “Company”) is pleased to announce it has completed the overnight marketing of up to 1,500,000 Priority Equity Shares and up to 1,500,000 Class A Shares. Total proceeds of the offering are expected to be approximately $24.45 million.

The Company has granted the dealers an overallotment of 225,000 units if exercised, bringing the total proceeds to $28.1 million

The offering is being co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and also includes Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp. and Raymond James.

The sales period of the overnight offering has now ended.

The Priority Equity Shares will be offered at a price of $10.20 per Priority Equity Share to yield 5.15% on the issue price and the Class A Shares will be offered at a price of $6.10 per Class A Share to yield 9.83% on the issue price. The closing price on the TSX of each of the Priority Equity Shares and Class A Shares on August 18, 2014 was $10.20 and $6.28, respectively.

The net proceeds of the secondary offering will be used by the Company to invest in common shares of Toronto-Dominion Bank, a leading Canadian Financial institution.

Brompton Funds has announced:

Brompton Lifeco Split Corp. (the “Company”) is pleased to announce it has filed a preliminary short form prospectus with respect to a treasury offering of class A shares and preferred shares.

The Company invests in a portfolio, on an approximately equal weight basis, of common shares of Canada’s four largest publicly-listed life insurance companies: Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.

The investment objectives of the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.075 per class A share and to provide the opportunity for growth in net asset value per class A share.

The investment objectives of the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.575 per annum and to return the original issue price ($10.00) to holders of preferred shares on the maturity date of the Company, April 29, 2019.

The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC, and Scotiabank, and includes BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Industrial Alliance Securities Inc., Mackie Research Capital Corporation, and Manulife Securities Incorporated.

LCS.PR.A was last mentioned on PrefBlog in connection with a similar exercise last April.

LCS.PR.A is not tracked by HIMIPref™ as it is a small issue. There are slightly less than 2.7-million units outstanding but it’s growing rapidly and things could change!