PrefBlog

Gatehouse Capital has announced:

Standard & Poor’s Ratings Services lowered the rating of Global Credit Pref Corp.’s (TSX:GPA.PR.A) preferred shares to P-5 on November 14 and they remain on CreditWatch with negative implications. The rating on the preferred shares of Global Credit Pref Corp. mirrors the lowering of the rating on the $48,031,000 fixed-rate static portfolio credit linked note issued by The Toronto-Dominion Bank to CCC Watch/Neg.

The Company has exposure to the credit linked note issued by The Toronto-Dominion Bank and held by Global Credit Trust, the return on which is linked to the credit performance of 124 reference entities.

The preferred shares are listed for trading on the Toronto Stock Exchange under the symbol GPA.PR.A

GPA.PR.A was placed on Watch-Negative following the WaMu Credit Event. There are 1.5-million shares outstanding, closing at 2.53-95 today. The NAV was $4.38 as of October 31 according to Gatehouse; shares outstanding are down slightly from the 1,537,267 reported June 30. According to the prospectus:

Preferred Shares may be surrendered at any time for retraction but will be retracted only
on the last day of the month (a “Valuation Date”) commencing October 31, 2005. Preferred Shares surrendered for retraction by a Holder at least five Business Days prior to a Valuation Date will be retracted on such Valuation Date and such Holder will receive payment on or before the tenth Business Day following such Valuation Date. On a retraction, Holders will be entitled to receive a retraction price per share (the “Preferred Share Retraction Price”) equal to 95% of the net asset value per Preferred Share determined as of the relevant Valuation Date, less $0.75.

GPA.PR.A is not tracked by HIMIPref™.

This entry was posted on Monday, November 17th, 2008 at 6:49 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.