PrefBlog

I have added NEW.PR.C to the HIMIPref™ database, as the soon to expire warrant offering is in the money and can be expected to increase the number of shares – and hence the Average Trading Value – dramatically.

NEW.PR.C commenced trading 2009-6-26 after a prospectus dated 2009-6-16.

Issue price of 13.70, annual dividend of 0.822 paid quarterly, hence coupon of 6%.

Maturity date 2014-6-26; redeemable every June 26 at par.

Rated Pfd-2 by DBRS continuously since inception.

Monthly Retraction with a formula of 95%NAV – C – 1. Oddly, there is no maximum price! There is a Special Annual Concurrent Retraction (including a Capital Share) at NAV.

The dividend policy is:

The Class A Capital Shares provide their holders with a leveraged investment, the value of which is linked to changes in the market price of the Portfolio Shares. Holders of Class A Capital Shares will be entitled on redemption to the benefit of any capital appreciation in the market price of the Portfolio Shares. The fixed distributions on the Series 2 Preferred Shares will be funded from the dividends received on the Portfolio Shares. If necessary, any shortfall in the dividends on the Series 2 Preferred Shares will be funded by proceeds from the sale of Portfolio Shares. In the event that the Portfolio Share dividends exceed the amount of the fixed Series 2 Preferred Share dividends and all expenses of the Company, the excess amount may be paid as dividends on the Class A Capital Shares, as determined by the Board of Directors of the Company, subject to the dividend policy of the Board of Directors.

NEW.PR.C has been assigned initially to the Scraps index, but may migrate shortly to the SplitShares index.

There will be those, I know, who will be pleased to point out that this back-dated addition of an issue adds a little selection bias to the HIMIPref™ database, to which I am forced to respond: “Your mother wears army boots!”. I NEED DATA, and with the recent disappearance of SXT.PR.A and the imminent disappearance of MUH.PR.A, I need it badly. I hope that following the warrant expiry, NEW.PR.C will be liquid enough to trade, at least in small pieces.

This entry was posted on Friday, March 18th, 2011 at 11:22 pm and is filed under Data Changes, 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.