YLO MTN BuyBacks: Filings 2011-8-26

Details are available at SEDI.

YLO MTN Buybacks Disclosed 8/26
Issue Trade
Face Value Price Yield
5.25% Feb 15, 2016 8/22 72,000 59,864 83.09 10.04%
Total for Issue to Date 67,439,350 56,237,936  
7.3% Feb 2, 2015 8/18 1,258,000 1,188,307 94.00 9.38%
  8/23 200,000 188,960 94.00 9.38%
Total for Issue to Date 121,885,000 115,122,386  
Grand Total to Date 219,808,350 198,360,061  
Yields have been calculated (using MS-Excel) assuming that the “Transaction Date” reported on SEDI is the Trade Date and that all trades were executed for normal settlement

The odd number for the total face value (a non-integral multiple of 1,000) has been previously discussed, so don’t start, OK? Totals include all filings commencing August 18.

Readers of the August edition of PrefLetter will understand that I am bitterly disappointed with the company’s decision to pursue buybacks by private contract; I feel that a Dutch Auction Tender, for all issues in one big pot (with conversion factors on the prices of different issues to reflect differing desirability to the company of purchasing the issues) would be a far better way to go.

YLO has the following preferred issues outstanding: YLO.PR.A, YLO.PR.B, YLO.PR.C and YLO.PR.D; the Normal Course Issuer Bid for these issues is still being pursued vigorously.

2 Responses to “YLO MTN BuyBacks: Filings 2011-8-26”

  1. newbiepref says:

    Actually YLO has not been very active purchasing the A shares this week, should this be interpreted as a cue that they will redeem for shares and not cash in 2012?

  2. jiHymas says:

    I don’t think so.

    The TMX’s Policy 6-501 Normal Course Issuer Bids assigns speed limits to the rate of repurchases, with a Block Purchase Exemption:

    Block Purchase Exception—A listed issuer may make one block purchase per calendar week which exceeds the daily repurchase restriction contained in subsection 628(a)(ix)(a) of the Company Manual, subject to maximum annual aggregate limits. Once the block purchase exception has been relied on, the listed issuer may not make any further purchases under the normal course issuer bid for the remainder of that calendar day.

    There was recently one insider block purchase – I forget the day – for 200,000 shares; the purchaser was probably, but not necessarily, the company (I’m waiting for the SEDI filings, which I expect to be published on September 1)

    Assuming that this block was purchased by the company, this would put them well in advance of their schedule, this single block would represent two months’ worth of their quota:

    Under its normal course issuer bids, Yellow Media Inc. intends to purchase for cancellation up to but not more than 51,782,537 of its outstanding common shares, 1,127,882 of its outstanding first preferred shares, series 1, 684,028 of its outstanding first preferred shares, series 2, 830,000 of its outstanding first preferred shares, series 3 and 500,000 of its outstanding first preferred shares, series 5,

    I discussed the relationship between the daily and annual speed limits with Table Y-8 of the August PrefLetter.

    All that being said, holders of YLO.PR.A bear a risk of (partial) loss of principal if the company exercises its conversion right [while continuing to pay dividends and operate as a going concern], a risk that is not borne by holders of the other series of preferreds.

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