Algonquin Power & Utilities Corporation, proud issuer of AQN.PR.A and AQN.PR.D, was confirmed at Pfd-3(low) today by DBRS:
APUC’s non-consolidated key financial metrics are in line with the current rating profile. Non-consolidated debt-to-capital has remained minimal (0% as of March 31, 2014) and APUC intends to maintain debt at the HoldCo level well below the 20% threshold. In addition, APUC’s financial profile is also supported by the small size of preferred dividends relative to the cash flow available to the HoldCo. For the year ended December 31, 2013, preferred dividends totalled $5.4 million, while estimated cash flow available to service these dividends totalled approximately $105 million, allowing the remaining cash to service common dividends and partially fund capital expenditure needs.
It was a mixed day for the Canadian preferred share market today, with PerpetualDiscounts off 1bp, FixedResets down 7bp and DeemedRetractibles gaining 5bp. Volatility was low, with two of the three issues mentioned being high-volatility Floaters. Volume was very low.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 3.07 % | 3.06 % | 19,563 | 19.52 | 1 | 0.4115 % | 2,584.9 |
| FixedFloater | 4.16 % | 3.40 % | 28,148 | 18.65 | 1 | 0.0438 % | 4,167.5 |
| Floater | 2.86 % | 2.96 % | 46,347 | 19.84 | 4 | -0.2992 % | 2,768.5 |
| OpRet | 4.02 % | -4.01 % | 79,133 | 0.08 | 1 | 0.1177 % | 2,722.2 |
| SplitShare | 4.25 % | 3.85 % | 50,019 | 4.01 | 6 | -0.0347 % | 3,120.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1177 % | 2,489.1 |
| Perpetual-Premium | 5.52 % | -5.09 % | 82,653 | 0.09 | 17 | 0.0300 % | 2,432.7 |
| Perpetual-Discount | 5.23 % | 5.08 % | 105,690 | 15.24 | 20 | -0.0149 % | 2,584.5 |
| FixedReset | 4.40 % | 3.59 % | 195,658 | 8.59 | 77 | -0.0712 % | 2,555.6 |
| Deemed-Retractible | 4.98 % | -1.40 % | 121,058 | 0.09 | 43 | 0.0546 % | 2,554.8 |
| FloatingReset | 2.66 % | 2.16 % | 93,176 | 3.85 | 6 | -0.1904 % | 2,514.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.B | Floater | -1.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-25 Maturity Price : 17.55 Evaluated at bid price : 17.55 Bid-YTW : 3.01 % |
| PWF.PR.P | FixedReset | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-25 Maturity Price : 22.71 Evaluated at bid price : 23.12 Bid-YTW : 3.40 % |
| PWF.PR.A | Floater | 1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-25 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 2.58 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| GWO.PR.N | FixedReset | 103,249 | Scotia crossed 40,000 at 21.40; Desjardins crossed 56,200 at the same price. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.35 Bid-YTW : 4.75 % |
| GWO.PR.P | Deemed-Retractible | 77,290 | TD crossed blocks of 30,000 and 45,000, both at 25.80. YTW SCENARIO Maturity Type : Call Maturity Date : 2020-03-31 Maturity Price : 25.25 Evaluated at bid price : 25.70 Bid-YTW : 5.09 % |
| POW.PR.G | Perpetual-Premium | 76,100 | TD crossed blocks of 30,000 and 45,000, both at 25.72. YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-15 Maturity Price : 25.00 Evaluated at bid price : 25.76 Bid-YTW : 5.12 % |
| TD.PF.A | FixedReset | 72,500 | TD crossed 50,000 at 25.28. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2044-07-25 Maturity Price : 23.23 Evaluated at bid price : 25.28 Bid-YTW : 3.61 % |
| SLF.PR.A | Deemed-Retractible | 54,125 | Desjardins crossed 49,200 at 24.20. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.15 Bid-YTW : 5.24 % |
| BNS.PR.P | FixedReset | 52,100 | TD crossed 50,000 at 25.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.45 Bid-YTW : 2.83 % |
| There were 16 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TD.PR.P | Deemed-Retractible | Quote: 26.08 – 26.55 Spot Rate : 0.4700 Average : 0.2743 YTW SCENARIO |
| GWO.PR.F | Deemed-Retractible | Quote: 25.75 – 26.20 Spot Rate : 0.4500 Average : 0.2620 YTW SCENARIO |
| IAG.PR.F | Deemed-Retractible | Quote: 26.05 – 26.49 Spot Rate : 0.4400 Average : 0.2755 YTW SCENARIO |
| BAM.PR.K | Floater | Quote: 17.60 – 18.00 Spot Rate : 0.4000 Average : 0.2599 YTW SCENARIO |
| BAM.PR.B | Floater | Quote: 17.55 – 17.95 Spot Rate : 0.4000 Average : 0.2697 YTW SCENARIO |
| PWF.PR.P | FixedReset | Quote: 23.12 – 23.45 Spot Rate : 0.3300 Average : 0.2080 YTW SCENARIO |