Power Financial Corporation has announced:
the successful completion and closing of an offering of 12,000,000 4.80% Non-Cumulative First Preferred Shares, Series S (the “Series S Shares”) priced at $25.00 per share to raise gross proceeds of $300 million.
The issue was bought by an underwriting syndicate co-led by BMO Capital Markets, RBC Capital Markets and Scotiabank.
The Series S Shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “PWF.PR.S”. Proceeds from the issue will be used to acquire subscription receipts of Great-West Lifeco Inc. (“Lifeco”) exchangeable into common shares of Lifeco as part of the $1.25 billion offering of subscription receipts announced by Lifeco on February 19, 2013 in connection with its proposed acquisition of Irish Life Group Limited and to supplement Power Financial’s financial resources.
PWF.PR.S is a Straight Perpetual, 4.80%, announced February 19. It will be tracked by HIMIPref™ and has been assigned to the PerpetualDiscount index.
The issue traded 673,150 shares today in a range of 24.93-99 before closing at 24.96-98, 16×44. Vital statistics are:
| PWF.PR.S | Perpetual-Discount | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-02-28 Maturity Price : 24.57 Evaluated at bid price : 24.96 Bid-YTW : 4.81 % |
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[…] Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2022-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.24 Bid-YTW : 4.74 % […]
Any idea why pwf hasn’t redeemed pwf.pr.i
yield is 6% and this recent newest perp issue came out at 4.80%
in june 2013 5year was near 1.60 and now is near 1.60
any reason why this 6% is still out there if they can issue cheaper??
being a perp would you look at a 7 to 10 year for average duration of a 30 year bond (would that apply to fix resets) or would you look at long term rate movements – I guess im asking have long term rates moved in a way that gwf wouldn’t be able to issue much cheaper now then 6% even if short term rates have stayed steady – long term rates don’t look much higher then they were a year ago unless I have a bad graph.
reikreik
or pwf.pr.g for that matter at 5.9%????
reikreik
another is 5.8% but that has a few years left before they can call at 25.00
Any idea why pwf hasn’t redeemed pwf.pr.i
No idea.
Buying these things is a gamble, because you don’t know what the PWF treasurer is thinking.
Fortuitously, PWF.PR.I, paying $1.50, closed at exactly the same price (25.46) as PWF.PR.R, paying $1.375 on Friday 13. The latter doesn’t have a par call until 2021-04-30, which is convenient for gambling purposes.
The gamble is: you make $0.125 p.a. more with PWF.PR.I, but you are subject to an immediate loss of $0.46 if they call it. So, looking at the investment on a buy-and-hold basis, you should buy PWF.PR.I if you think it will last for three and three-quarter more years; buy PWF.PR.R if you think they will redeem it before then. Just like the Over/Under at the carnival!