TA.PR.C to be Redeemed

Yet another fine old preferred security will shortly be leaving us.

In a press release dated November 22, Transalta announced:

TransAlta Corporation (TSX: TA; NYSE: TAC) today announced it will redeem all of its 7.75% Preferred Securities (the “7.75% Preferred Securities”), which have an aggregate principal amount of $175,000,000, on Jan. 2, 2007 (the “Redemption Date”).  The redemption will be funded with short-term debt and is expected to reduce interest costs.


I’ll just bet that’s the expectation! By more than 3% absolute, I’d guess or $5-million-plus annually!

It has been a long time since this paper was investment-grade … DBRS downgraded it from Pfd-2(low)y (the “y” meaning “hybrid”) to Pfd-3(high)y on December 12, 2002, but for a little while it was a fine trader. It will be missed, and it will be a long time before investment grade paper pays 7.75% again!

2 Responses to “TA.PR.C to be Redeemed”

  1. […] Update : Mea culpa. It wasn’t the TSX’s fault – it was mine, revising the raw feed to remove the TA.PR.C redemption and not doing it right. Still … the programming has been revised so that the same problem will be caught much more efficiently and similar problems will be reported much better (to me, I mean). Just another day in the software-bulletproofing department. […]

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