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Archive for September, 2021

New Issue: EMA Straight Perpetual, 4.60%

Thursday, September 16th, 2021

Emera Incorporated has announced:

that it will issue 6,000,000 Cumulative Redeemable First Preferred Shares, Series L (the “Series L Preferred Shares”) at a price of $25.00 per share for aggregate gross proceeds of $150 million on a bought deal basis to a syndicate of underwriters in Canada led by TD Securities Inc. and CIBC Capital Markets. Emera has granted to the underwriters an option, exercisable at any time up to two business days prior to the closing of the offering, to purchase up to an additional 2,000,000 Series L Preferred Shares at a price of $25.00 per share (the “Underwriters’ Option”). If the Underwriters’ Option is exercised in full, the aggregate gross proceeds to Emera will be $200 million.

The holders of Series L Preferred Shares will be entitled to receive fixed cumulative preferential cash dividends at an annual rate of $1.15 per share, payable quarterly, as and when declared by the board of directors of the Company yielding 4.60% per annum. The initial dividend, if declared, will be payable on November 15, 2021 and will be $0.1638 per share, based on an anticipated closing date of September 24, 2021.

The Series L Preferred Shares will not be redeemable by the Company prior to November 15, 2026. On or after November 15, 2026 the Company may redeem all or any part of the then outstanding Series L Preferred Shares, at the Company’s option without the consent of the holder, by the payment of: $26.00 per share if redeemed before November 15, 2027; $25.75 per share if redeemed on or after November 15, 2027 but before November 15, 2028; $25.50 per share if redeemed on or after November 15, 2028 but before November 15, 2029;

$25.25 per share if redeemed on or after November 15, 2029 but before November 15, 2030; and $25.00 per share if redeemed on or after November 15, 2030, together, in each case, with all accrued and unpaid dividends up to but excluding the date fixed for redemption. The Series L Preferred Shares do not have a fixed maturity date and are not redeemable at the option of the holders of Series L Preferred Shares.

The offering is subject to the receipt of all necessary regulatory and stock exchange approvals. The net proceeds of the offering will be used for general corporate purposes.

The Series L Preferred Shares will be offered to the public in Canada by way of prospectus supplement to Emera’s short form base shelf prospectus dated March 12, 2021. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

They later announced:

that it has agreed to increase the size of its previously announced offering and issue 9,000,000 Cumulative Redeemable First Preferred Shares, Series L (the “Series L Preferred Shares”) at a price of $25.00 per share for aggregate gross proceeds of $225,000,000 on a bought deal basis to a syndicate of underwriters in Canada led by TD Securities Inc. and CIBC Capital Markets.

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September PrefLetter Released!

Monday, September 13th, 2021

The September, 2021, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

The September edition is somewhat foreshortened, but contains the most critical elements.

There is a problem with the site certificate; this is being updated but takes a surprising amount of time. If your browser warns you the link may not be private, just check that the domain is prefletter.com and you may proceed. A new problem this month is that the https: in the link emailed to you should be replaced with http:.

I do apologize for this. Everything happens at once!

PrefLetter may now be purchased by all Canadian residents.

Until further notice, the “Previous Edition” will refer to the September, 2021, issue, while the “Next Edition” will be the October, 2021, issue, scheduled to be prepared as of the close October 8, 2021, and eMailed to subscribers prior to market-opening on October 12.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: My verbosity has grown by such leaps and bounds that it is no longer possible to deliver PrefLetter as an eMail attachment – it’s just too big for my software! Instead, I have sent passwords – click on the link in your eMail and your copy will download.

Note: There have been problems lately with corporate eMail protection systems that substitute “safe” links for the links sent in the eMails; the problem being that the “safe” links do not work and an error is generated by my software. To avoid possible problems and delays, please subscribe through an eMail account that is not “protected” by such software.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter eMails sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository – there are some hints in the post Sympatico Spam Filters out of Control. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

Note: There have been other scattered complaints that double-clicking on the links in the “PrefLetter Download” email results in a message that the password has already been used. I have been able to reproduce this problem in my own eMail software … the problem is double-clicking. What happens is the first click opens the link and the second click finds that the password has already been used and refuses to work properly. So the moral of the story is: Don’t be a dick! Single Click!

Note: Assiduous Reader DG informs me:

In case you have any other Apple users: you need to install a free App from the apple store called “FileApp”. It comes with it’s own tutorial and allows you to download and save a PDF file.

However, Assiduous Reader Adrian informs me in the comments to the January 2015 release:

Some nitpicking for DG:
FileApp costs $1.19 in the Apple Store.

But Adrian2 now advises:

Well, as of now, FileApp is free (again?).

Posted in PrefLetter | 2 Comments »

HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly
Index	Mean Current Yield (at bid)	Median YTW	Median Average Trading Value	Median Mod Dur (YTW)	Issues	Day’s Perf.	Index Value
Ratchet	0.00 %	0.00 %	0	0.00	0	-1.2876 %	2,484.3
FixedFloater	0.00 %	0.00 %	0	0.00	0	-1.2876 %	4,558.5
Floater	3.50 %	3.45 %	50,031	18.65	3	-1.2876 %	2,627.1
OpRet	0.00 %	0.00 %	0	0.00	0	0.0129 %	3,692.6
SplitShare	4.65 %	4.02 %	34,431	3.72	6	0.0129 %	4,409.7
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.0129 %	3,440.6
Perpetual-Premium	5.00 %	-11.20 %	52,692	0.09	34	0.0387 %	3,319.6
Perpetual-Discount	0.00 %	0.00 %	0	0.00	0	0.0387 %	3,994.9
FixedReset Disc	3.98 %	3.51 %	111,274	17.85	40	0.3385 %	2,830.8
Insurance Straight	4.87 %	-9.12 %	78,877	0.08	21	0.0428 %	3,736.4
FloatingReset	3.09 %	3.09 %	30,601	19.51	1	1.2270 %	2,566.9
FixedReset Prem	4.67 %	3.25 %	133,722	2.42	33	0.1759 %	2,758.7
FixedReset Bank Non	0.00 %	0.00 %	0	0.00	0	0.3385 %	2,893.6
FixedReset Ins Non	4.05 %	3.33 %	94,879	18.20	20	0.1574 %	2,941.2

Performance Highlights
Issue	Index	Change	Notes
BAM.PR.C	Floater	-6.62 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 11.70 Evaluated at bid price : 11.70 Bid-YTW : 3.66 %
BAM.PF.E	FixedReset Disc	-2.42 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 4.11 %
TRP.PR.D	FixedReset Disc	-1.25 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 4.10 %
BAM.PR.B	Floater	-1.04 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 12.43 Evaluated at bid price : 12.43 Bid-YTW : 3.45 %
TD.PF.D	FixedReset Disc	1.10 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 23.20 Evaluated at bid price : 24.82 Bid-YTW : 3.51 %
TRP.PR.A	FixedReset Disc	1.11 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 18.22 Evaluated at bid price : 18.22 Bid-YTW : 4.00 %
BAM.PR.X	FixedReset Disc	1.12 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 17.10 Evaluated at bid price : 17.10 Bid-YTW : 3.91 %
TD.PF.K	FixedReset Prem	1.20 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 23.70 Evaluated at bid price : 25.40 Bid-YTW : 3.44 %
TRP.PR.F	FloatingReset	1.23 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 16.50 Evaluated at bid price : 16.50 Bid-YTW : 3.09 %
FTS.PR.H	FixedReset Disc	1.33 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 15.20 Evaluated at bid price : 15.20 Bid-YTW : 3.69 %
TRP.PR.G	FixedReset Disc	1.52 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 22.57 Evaluated at bid price : 23.45 Bid-YTW : 3.93 %
CU.PR.C	FixedReset Disc	1.80 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 22.01 Evaluated at bid price : 22.60 Bid-YTW : 3.59 %
FTS.PR.K	FixedReset Disc	1.96 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 3.67 %
BAM.PR.R	FixedReset Disc	2.71 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 3.97 %
BAM.PR.K	Floater	3.94 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 12.67 Evaluated at bid price : 12.67 Bid-YTW : 3.38 %
PWF.PR.P	FixedReset Disc	5.41 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 3.40 %

Volume Highlights
Issue	Index	Shares Traded	Notes
BAM.PR.R	FixedReset Disc	215,000	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 3.97 %
CU.PR.G	Perpetual-Premium	78,700	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-09-01 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 3.51 %
BMO.PR.Y	FixedReset Disc	75,200	YTW SCENARIO Maturity Type : Call Maturity Date : 2025-08-25 Maturity Price : 25.00 Evaluated at bid price : 24.85 Bid-YTW : 3.30 %
MFC.PR.C	Insurance Straight	55,300	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-22 Maturity Price : 25.00 Evaluated at bid price : 25.29 Bid-YTW : -8.90 %
BMO.PR.E	FixedReset Prem	45,700	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 23.68 Evaluated at bid price : 25.41 Bid-YTW : 3.52 %
MFC.PR.B	Insurance Straight	41,900	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-22 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : -9.20 %
There were 14 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
BAM.PR.C	Floater	Quote: 11.70 – 12.70 Spot Rate : 1.0000 Average : 0.5605 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 11.70 Evaluated at bid price : 11.70 Bid-YTW : 3.66 %
GWO.PR.F	Insurance Straight	Quote: 26.55 – 27.55 Spot Rate : 1.0000 Average : 0.6454 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-22 Maturity Price : 25.00 Evaluated at bid price : 26.55 Bid-YTW : -58.30 %
BAM.PF.C	Perpetual-Premium	Quote: 25.34 – 26.04 Spot Rate : 0.7000 Average : 0.4182 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-22 Maturity Price : 25.25 Evaluated at bid price : 25.34 Bid-YTW : -0.81 %
BAM.PF.E	FixedReset Disc	Quote: 21.00 – 21.70 Spot Rate : 0.7000 Average : 0.4934 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 4.11 %
PVS.PR.H	SplitShare	Quote: 25.75 – 26.50 Spot Rate : 0.7500 Average : 0.5591 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 4.14 %
TRP.PR.D	FixedReset Disc	Quote: 20.60 – 21.14 Spot Rate : 0.5400 Average : 0.3525 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2051-09-22 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 4.10 %

HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly
Index	Mean Current Yield (at bid)	Median YTW	Median Average Trading Value	Median Mod Dur (YTW)	Issues	Day’s Perf.	Index Value
Ratchet	0.00 %	0.00 %	0	0.00	0	0.1881 %	2,516.7
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.1881 %	4,618.0
Floater	3.45 %	3.42 %	50,310	18.71	3	0.1881 %	2,661.4
OpRet	0.00 %	0.00 %	0	0.00	0	-0.1868 %	3,692.1
SplitShare	4.65 %	3.97 %	34,332	3.72	6	-0.1868 %	4,409.2
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	-0.1868 %	3,440.2
Perpetual-Premium	5.01 %	-11.35 %	53,509	0.09	34	-0.0660 %	3,318.3
Perpetual-Discount	0.00 %	0.00 %	0	0.00	0	-0.0660 %	3,993.4
FixedReset Disc	3.99 %	3.59 %	112,821	17.84	40	0.2251 %	2,821.2
Insurance Straight	4.87 %	-11.21 %	81,776	0.09	21	0.0707 %	3,734.8
FloatingReset	3.13 %	3.12 %	31,860	19.42	1	-3.5503 %	2,535.8
FixedReset Prem	4.68 %	3.26 %	138,418	2.42	33	-0.0896 %	2,753.8
FixedReset Bank Non	0.00 %	0.00 %	0	0.00	0	0.2251 %	2,883.9
FixedReset Ins Non	4.06 %	3.33 %	95,590	18.20	20	0.3723 %	2,936.5

PrefBlog

Archive for September, 2021

September 22, 2021

September 21, 2021

September 20, 2021

September 17, 2021

September 16, 2021

September 15, 2021

New Issue: EMA Straight Perpetual, 4.60%

September 14, 2021

September 13, 2021

September PrefLetter Released!

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