TRP.PR.B Slips on Opening, But Volume Good

TransCanada Corp. has announced:

that it has completed its public offering of cumulative redeemable first preferred shares, series 3 (the “Series 3 Preferred Shares”). As the underwriters fully exercised their option to acquire an additional two million Series 3 Preferred Shares, the size of the offering increased to a total of 14 million shares resulting in gross proceeds of $350 million.

The offering was first announced on March 4, 2010 when TransCanada entered into an agreement with a syndicate of underwriters in Canada led by Scotia Capital Inc. and RBC Capital Markets.

The net proceeds of the offering will be used to partially fund capital projects, for general corporate purposes and to reduce short term indebtedness of TransCanada and its affiliates, which short term indebtedness was used to fund TransCanada’s capital program and for general corporate purposes.

TRP.PR.B is the new FixedReset 4.00%+128 announced March 4. TRP.PR.B traded 437,233 shares in a range of 24.83-95 before closing at 24.88-90, 48×2.

Vital statistics are:

TRP.PR.B FixedReset YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2040-03-11
Maturity Price : 24.83
Evaluated at bid price : 24.88
Bid-YTW : 3.88 %

The issue will be tracked by HIMIPref™. It has been added to the FixedReset sub-index; at some point this index will be split into Premium and Discount moieties, similarly to the Straight Perpetuals, as the behaviour of Premium and Discount issues in response to yield shocks will be different.

This entry was posted on Thursday, March 11th, 2010 at 8:17 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.

7 Responses to “TRP.PR.B Slips on Opening, But Volume Good”

  1. PrefBlog » Blog Archive » March 11, 2010 says:
    March 11, 2010 at 8:36 pm

    […] PrefBlog Canadian Preferred Shares – Data and Discussion « TRP.PR.B Slips on Opening, But Volume Good […]

  2. PrefBlog » Blog Archive » March 12, 2010 says:
    March 12, 2010 at 10:30 pm

    […] Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-12 Maturity Price : 24.87 Evaluated at bid price : 24.92 Bid-YTW : 3.94 % […]

  3. PrefBlog » Blog Archive » March 15, 2010 says:
    March 15, 2010 at 7:40 pm

    […] Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-15 Maturity Price : 24.91 Evaluated at bid price : 24.96 Bid-YTW : 3.94 % […]

  4. PrefBlog » Blog Archive » March 19, 2010 says:
    March 21, 2010 at 9:40 am

    […] Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-19 Maturity Price : 24.91 Evaluated at bid price : 24.96 Bid-YTW : 3.94 % […]

  5. March 23, 2010 « PrefBlog says:
    March 23, 2010 at 7:12 pm

    […] Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2040-03-23 Maturity Price : 24.88 Evaluated at bid price : 24.93 Bid-YTW : 3.95 % […]

  6. prefQC says:
    May 29, 2015 at 4:01 pm

    Hi James,
    (Sorry for commenting such an old post, but it seems the most logical…)
    On what day is the new TRP.PR.B reset rate determined? Thirty days before June 30 is May 31, a Sunday. In this case is the rate determined on the first working day before or after May 31?

    Thanks as always for sharing your knowledge!

  7. jiHymas says:
    May 31, 2015 at 1:17 am

    From the prospectus for TRP.PR.B:

    ‘‘Fixed Rate Calculation Date’’ means, for any Subsequent Fixed Rate Period, the 30th day prior to the first day of such Subsequent Fixed Rate Period.
    …
    ‘‘Subsequent Fixed Rate Period’’ means, for the initial Subsequent Fixed Rate Period, the period from and including June 30, 2015, to but excluding June 30, 2020, and for each succeeding Subsequent Fixed Rate Period means the period from and including the day immediately following the last day of the immediately preceding Subsequent Fixed Rate Period to but excluding June 30 in the fifth year thereafter.
    …
    Business Day

    If any day on which any dividend on the Series 3 Shares is payable by the Corporation or on or by which any other action is required to be taken by the Corporation is not a business day, then such dividend shall be payable and such other action may be taken on or by the next succeeding day that is a business day. For the purposes hereof, ‘‘business day’’ shall mean a day on which banks are generally open for business in both Calgary, Alberta and Toronto, Ontario.

    So I’m gonna say the day after: June 1.

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