ALA.PR.I Firm on Good Volume

AltaGas Ltd. has announced:

that it has closed its previously announced public offering of 8,000,000 Cumulative Redeemable 5-Year Minimum Rate Reset Preferred Shares, Series I (the “Series I Preferred Shares”), at a price of $25.00 per Series I Preferred Share (“the Offering”) for aggregate gross proceeds of $200 million.

The Offering was first announced on November 12, 2015 when AltaGas entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets and Scotiabank.

Net proceeds will be used to reduce outstanding indebtedness and for general corporate purposes.

The Series I Preferred Shares will commence trading today on the Toronto Stock Exchange (“TSX”) under the symbol ALA.PR.I.

ALA.PR.I is a FixedReset, 5.25%+419M525, announced November 12. The issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

The issue traded 844,179 shares today (consolidated exchanges) in a range of 24.97-20 before closing at 25.05-07, 10×40. Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2045-11-23
Maturity Price : 23.17
Evaluated at bid price : 25.05
Bid-YTW : 5.17 %

The Implied Volatility fit isn’t very good …

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