PrefBlog

TransCanada Corporation has announced:

that it has completed its public offering of cumulative redeemable minimum rate reset first preferred shares, series 15 (the “Series 15 Preferred Shares”). TransCanada issued 40 million Series 15 Preferred Shares for aggregate gross proceeds of $1.0 billion through a syndicate of underwriters co-led by Scotiabank, BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets and TD Securities Inc.

The net proceeds of the offering will be used for general corporate purposes and to reduce short term indebtedness of TransCanada and its affiliates, which short term indebtedness was used to fund TransCanada’s capital program and for general corporate purposes.

The Series 15 Preferred Shares will begin trading today on the TSX under the symbol TRP.PR.K.

TRP.PR.K is a FixedReset, 4.90%+385M490, announced 2016-11-14. It will be tracked by HIMIPref™ and has been assigned to the FixedResets subindex.

The issue traded a whopping 1,943,523 shares today in a range of 24.80-99 before closing at 24.80-81, 316×12. The volume only places it 38th on my all-time high-volume list; it’s well behind the 4.3-million odd shares of BMO.PR.B traded 2016-10-21. Vital statistics are:

Implied Volatility leads to a suspicion that this issue is overpriced in relation to its peers:

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This entry was posted on Tuesday, November 22nd, 2016 at 2:31 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.