Details from SEDI.
Normal Course Issuer Bid (NCIB) information from YLO Press Release 2011-5-11.
| YLO Preferred Share NCIB | |||||
| Issue | Month | Shares | Total Paid | Total PV | Average Price |
| YLO.PR.A | May | 82,435 | 1,947,561 | 2,060,875 | 23.63 |
| June | 634,663 | 14,593,162 | 15,866,575 | 22.99 | |
| July | 56,588 | 1,285,669 | 1,414,700 | 22.72 | |
| Aug. | 459,262 | 7,670,789 | 11,481,550 | 16.70 | |
| Issue Total (NCIB Max) |
1,232,948 (1,127,882) |
25,497,180 | 30,823,700 | 20.68 | |
| YLO.PR.B | May | 218,798 | 3,625,189 | 5,469,950 | 16.57 |
| June | 318,980 | 5,194,575 | 7,974,500 | 16.28 | |
| July | 19,670 | 302,641 | 491,750 | 15.39 | |
| Aug. | 214,440 | 2,144,827 | 5,361,000 | 10.00 | |
| Issue Total (NCIB Max) |
771,888 (684,028) |
11,267,233 | 19,297,200 | 14.60 | |
| YLO.PR.D | May | 16,180 | 335,026 | 404,500 | 20.71 |
| June | 23,735 | 389,664 | 593,375 | 16.42 | |
| July | 9,695 | 148,694 | 242,375 | 15.34 | |
| Aug. | 27,700 | 316,971 | 692,500 | 11.44 | |
| Issue Total (NCIB Max) |
77,310 (500,000) |
1,190,354 | 1,932,750 | 15.40 | |
| YLO.PR.C | May | 36,280 | 740,963 | 907,000 | 20.42 |
| June | 54,052 | 869,827 | 1,351,300 | 16.09 | |
| July | 21,340 | 326,336 | 533,500 | 15.29 | |
| Aug. | 61,292 | 698,142 | 1,523,300 | 11.39 | |
| Issue Total (NCIB Max) |
172,964 (830,000) |
2,635,268 | 4,324,100 | 15.24 | |
| Grand Total | 2,255,110 | 40,590,036 | 56,377,750 | 18.00 | |
As pointed out by Assiduous Reader radamesb, it appears that the company has reached – and even gone beyond! – its NCIB limit for the two retractibles; it looks like any further purchases of YLO.PR.A and YLO.PR.B will have to be done by public tender (such as was done for the NA high-coupon FixedResets, but – heh-heh – with a lower price).
However, the Exchange reports the usual batch of 3,134 insider buys today, so I’m not sure what’s going on. Anybody who knows the rules better than I do – or can shake an answer out of YLO Investor Relations – may enlighten me in the comments.
I am not sure but I think that for the A’s and the B’s , only shares repurchased from June 13 and on should be counted towards the total of 1,127,882 and 684,028 respectively. The shares repurchased prior to June 13 are probably counted in the previous share buyback program that was announced on June 8 2010.
That’s an interesting idea, but I’m not sure if it works like that – the 2011 press release quite clearly states a time period for the NCIB with no qualifications.
I have sent an inquiry to the company.
Well, what matters here? TSX volume or all volume on all exchanges? That might create more room.
In addition, how likely is it that “forebearance” might occur for “small” or “unintentional” over-purchases, if the difference is made up in the next period?
Well, what matters here? TSX volume or all volume on all exchanges? That might create more room.
The volume only affects the daily limit (which can be exceeded with block purchases) – the total annual amount is determined by the issue size. I showed in the last edition of PrefLetter that the annual limits for C & D could not be achieved (in the absence of block purchases) because the volume at time of approval was so small relative to issue size.
In addition, how likely is it that “forebearance” might occur for “small” or “unintentional” over-purchases, if the difference is made up in the next period?
I really don’t know. My guess is that as long as they can show that going over the annual limit was simply stupid (as opposed to venal), they would only face a small fine. But really, I’m holding off these guessing games until the company confirms, denies or explains the situation in response to my recent eMail.
I’ll just have to hope that the operative word is not “ignores”, as it has been so far with respect to my question about cash-flow and working capital accounts.
Cangator pointed out to me in an email that using May 13 as the start date for Series 1 & 2 comes out to exactly the right amount of Series A shares, and leaves room for Series B if the cancellation of 490,904 shares on May 14 is counted towards the previous year’s buyback (since the original purchases were made before May 13). It seems that while they calculated the volume based on the same dates, that they were permitted to finish the previous year’s buyback before starting the new one, leaving different end dates as well.
Sorry, June 13 for Series 1 and 2. May 13 for Series 3 and 5.
Well, anything’s possible; including the idea that that’s what YLO thought and were wrong. I just don’t know and my position remains: I have an inquiry in with the company’s IR department and will see whether they answer.
It is of interest to note the following coincidence:The CFO is no longer with the firmThe Toronto Exchange reported no insider buying of the preferreds today
Meaningful? Probably not; getting fired would be a pretty extreme punishment for going over the limit. So … I’ll just keep watching my incoming eMail.
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