Veresen Inc. has announced:
that it has closed its previously announced bought deal offering of 8,000,000 Cumulative Redeemable Preferred Shares, Series E (the “Series E Preferred Shares”) at a price of $25.00 per share representing aggregate gross proceeds of $200,000,000 (the “Offering”). The Offering was made through a syndicate of underwriters co-led by Scotiabank, TD Securities Inc. and RBC Capital Markets.
The net proceeds from the Offering will be used to repay amounts outstanding under the credit facility that Veresen entered into for purposes of financing its acquisition of a 50% convertible preferred interest in Ruby Pipeline Holding Company, L.L.C., the entity which indirectly owns the Ruby pipeline system.
The Series E Preferred Shares will begin trading on the Toronto Stock Exchange today under the symbol “VSN.PR.E”.
VSN.PR.E is a FixedReset, 5.00%+427, announced 2015-03-23. The issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.
The issue has been rated Pfd-3 [Stable] by DBRS.
VSN.PR.E traded 616,055 shares today (consolidated exchanges) in a range of 24.75-92 before closing at 24.75-79. Vital statistics are:
| VSN.PR.E |
FixedReset |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2045-04-01
Maturity Price : 23.06
Evaluated at bid price : 24.75
Bid-YTW : 5.02 % |
While the issue closed its first day at a discount, its opening day turned out better than might be expected! The NAV of BMO S&P/TSX Laddered Preferred Share Index ETF (ZPR) was 12.86 at the close on March 23 (the announcement day) and was 12.50 today. After doing a rough adjustment for the $0.048 distribution that went ex on March 26, we calculate a total return for the FixedReset ETF over the period of -2.4%, which suggests that a closing price of about 24.39 could have been expected.
This entry was posted on Wednesday, April 1st, 2015 at 11:38 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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VSN.PR.E Better Than Expected On Decent Volume
Veresen Inc. has announced:
VSN.PR.E is a FixedReset, 5.00%+427, announced 2015-03-23. The issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.
The issue has been rated Pfd-3 [Stable] by DBRS.
VSN.PR.E traded 616,055 shares today (consolidated exchanges) in a range of 24.75-92 before closing at 24.75-79. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2045-04-01
Maturity Price : 23.06
Evaluated at bid price : 24.75
Bid-YTW : 5.02 %
While the issue closed its first day at a discount, its opening day turned out better than might be expected! The NAV of BMO S&P/TSX Laddered Preferred Share Index ETF (ZPR) was 12.86 at the close on March 23 (the announcement day) and was 12.50 today. After doing a rough adjustment for the $0.048 distribution that went ex on March 26, we calculate a total return for the FixedReset ETF over the period of -2.4%, which suggests that a closing price of about 24.39 could have been expected.
This entry was posted on Wednesday, April 1st, 2015 at 11:38 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.