Partners Value Split Corp. has released its Semi-Annual Report to June 30, 2014.
The company has the following issues outstanding: PVS.PR.A, PVS.PR.B, PVS.PR.C and PVS.PR.D.
Figures of interest are:
MER: I suggest it is best to include the amortization of share issue costs in MER – after all, this is a charge against the stated value of the company. Therefore, expenses were $213,000 (regular expenses) + $710,000 (amortization) = $923,000 for six months on assets of $2.348-billion (see below) or 8bp p.a..
Average Net Assets: We need this to calculate portfolio yield and MER. There were negligible capital transactions, so we’ll just take the average of the beginning and end of period assets (including preferred shares) so: [(1.501-billion + 0.690-billion) + (1.816-billion + 0.690-billon)]/2 = $2.348-billion
Underlying Portfolio Yield: Total Income of $21.0-million divided by average net assets of $2,348-million is 1.79% p.a..
Income Coverage: Net income of $20.846-million less amortization of $0.710-million is $20.136-million to cover senior preferred dividends of $12.993-million is 155%. However, I consider it prudent to include the $5-million stated entitlement of the Junior preferreds, even though less than half of this was actually paid in 2013 because the Juniors can be retracted at any time, which could prove embarrassing in times of extreme stress. So I’d say income coverage is 112%.
This entry was posted on Monday, October 13th, 2014 at 4:22 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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PVS Semi-Annual Report, June 2014
Partners Value Split Corp. has released its Semi-Annual Report to June 30, 2014.
The company has the following issues outstanding: PVS.PR.A, PVS.PR.B, PVS.PR.C and PVS.PR.D.
Figures of interest are:
MER: I suggest it is best to include the amortization of share issue costs in MER – after all, this is a charge against the stated value of the company. Therefore, expenses were $213,000 (regular expenses) + $710,000 (amortization) = $923,000 for six months on assets of $2.348-billion (see below) or 8bp p.a..
Average Net Assets: We need this to calculate portfolio yield and MER. There were negligible capital transactions, so we’ll just take the average of the beginning and end of period assets (including preferred shares) so: [(1.501-billion + 0.690-billion) + (1.816-billion + 0.690-billon)]/2 = $2.348-billion
Underlying Portfolio Yield: Total Income of $21.0-million divided by average net assets of $2,348-million is 1.79% p.a..
Income Coverage: Net income of $20.846-million less amortization of $0.710-million is $20.136-million to cover senior preferred dividends of $12.993-million is 155%. However, I consider it prudent to include the $5-million stated entitlement of the Junior preferreds, even though less than half of this was actually paid in 2013 because the Juniors can be retracted at any time, which could prove embarrassing in times of extreme stress. So I’d say income coverage is 112%.
This entry was posted on Monday, October 13th, 2014 at 4:22 am 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.