This is BG Income + Growth Split Trust, a preferred security not tracked by HIMIPref™ … but I’ll report on its partial redemption call just for fun anyway!
According to their prospectus, the prefs had good call protection:
Preferred Securities also may be called by the Trust and purchased prior to the Maturity Date (the “”Call Right”), at a price per Preferred Security which until May 31, 2005 will be equal to $10.40 and which will decline by $0.10 each year thereafter to $10.00 after May 31, 2008, plus any accrued and unpaid interest thereon.
Now some of them have been called:
The call of Preferred Securities represents approximately 18.3% of the outstanding Preferred Securities. The Preferred Securities will be called on a pro rata basis such that each holder of Preferred Securities of record on December 6, 2006, as per the records of the Canadian Depository for Securities Limited (CDS), will have approximately 18.3% of their Preferred Securities redeemed. The total redemption amount for the Preferred Securities will be $10.33587 per security, which represents a price of $10.30 plus interest from the date of the last distribution to December 6, 2006.
Given that the maturity is May 31,2009 … call it 2.5 years away … we can say, roughly that a price of 10.30 equates to a call yield of 4.7%. So – the pref holders did fine.
Some of the holders did really well! I see a volume spike – such as it is! – on November 13, when the closing price was over $10.60, and a close of over $10.80 on November 24.
Definately, the world would be a better place if all split-share preferred had some call-protection via premia on the call price.
This entry was posted on Wednesday, December 6th, 2006 at 1:49 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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BDS.PR.A Partial Call for Redemption
This is BG Income + Growth Split Trust, a preferred security not tracked by HIMIPref™ … but I’ll report on its partial redemption call just for fun anyway!
According to their prospectus, the prefs had good call protection:
Now some of them have been called:
Given that the maturity is May 31,2009 … call it 2.5 years away … we can say, roughly that a price of 10.30 equates to a call yield of 4.7%. So – the pref holders did fine.
Some of the holders did really well! I see a volume spike – such as it is! – on November 13, when the closing price was over $10.60, and a close of over $10.80 on November 24.
Definately, the world would be a better place if all split-share preferred had some call-protection via premia on the call price.
This entry was posted on Wednesday, December 6th, 2006 at 1:49 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.