TransAlta Corporation has announced:
that 1,824,620 of its 12,000,000 Cumulative Redeemable Rate Reset Preferred Shares, Series A (the “Series A Shares”) have been converted, on a one-for-one basis, into Cumulative Redeemable Floating Rate Preferred Shares, Series B (the “Series B Shares”). As a result of the conversion, TransAlta has 10,175,380 Series A Shares and 1,824,620 Series B Shares issued and outstanding.
The Series B Shares will begin trading on the Toronto Stock Exchange (TSX) today under the symbol TA.PR.E. The Series A Shares will continue to be listed on the TSX under the symbol TA.PR.D.
The 15% conversion rate has been reported previously; Assiduous Readers will remember that I recommended against conversion. TA.PR.D now pays 2.709% (on par) until 2021-3-31, while TA.PR.E will pay 3-month bills +203bp, reset quarterly.
TA.PR.E closed with a ridiculous quote of 10.00-11.00, 1×10. I expect this to decline precipitously in short order, given the closing quote on TA.PR.D of 8.39-50, 4×24.
Vital statistics are:
| TA.PR.D |
FixedReset |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-03-31
Maturity Price : 8.39
Evaluated at bid price : 8.39
Bid-YTW : 8.19 % |
| TA.PR.E |
FloatingReset |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-03-31
Maturity Price : 10.00
Evaluated at bid price : 10.00
Bid-YTW : 6.22 % |
This entry was posted on Friday, April 1st, 2016 at 3:53 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.
TA.PR.E Listed: No Trading After Conversion From TA.PR.D
TransAlta Corporation has announced:
The 15% conversion rate has been reported previously; Assiduous Readers will remember that I recommended against conversion. TA.PR.D now pays 2.709% (on par) until 2021-3-31, while TA.PR.E will pay 3-month bills +203bp, reset quarterly.
TA.PR.E closed with a ridiculous quote of 10.00-11.00, 1×10. I expect this to decline precipitously in short order, given the closing quote on TA.PR.D of 8.39-50, 4×24.
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2046-03-31
Maturity Price : 8.39
Evaluated at bid price : 8.39
Bid-YTW : 8.19 %
Maturity Type : Limit Maturity
Maturity Date : 2046-03-31
Maturity Price : 10.00
Evaluated at bid price : 10.00
Bid-YTW : 6.22 %
This entry was posted on Friday, April 1st, 2016 at 3:53 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.