PrefBlog

TransCanada Corporation has announced:

that TransCanada PipeLines Limited (the “Company”) authorized the redemption of all the Company’s four million outstanding 5.60 per cent Cumulative Redeemable First Preferred Shares Series U (Series U Shares) on October 15, 2013. The Series U Shares will be redeemed at a price of $50 per share plus $0.5907 representing accrued and unpaid dividends to such redemption date. The total face value of the outstanding Series U Shares is $200 million and they carry an aggregate of $11.2 million in annualized dividends.

The redemption of the Series U Shares will be administered by Computershare Trust Company of Canada. The Series U Shares trade on the Toronto Stock Exchange under the symbol TCA.Pr.X.

Update: Now, why would TransCanada redeem these shares when they’ve gone out of style recently? Well … have a look at SEDAR and particularly the Preliminary Short Form Prospectus issues September 9 … I’m not allowed to link to this document directly, because the Canadian Securities Administrators, many of whom will eventually get new jobs at the banks and CDS, have awarded a monopoly on the electronic publication of public securities documents to CDS; CDS, naturally, abuses this monopoly by refusing to allow external links to this public information.

Anyway, this prospectus is for more MTNs. On July 19 they issued $300-million of debentures priced at 99.521 with a coupon of 4.55% … and TCA.PR.X has a coupon of 5.6% … and that 5.6% is dividends ….

This entry was posted on Friday, September 13th, 2013 at 12:51 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.