The first week of the new year has started with a bang!
The Bank of Nova Scotia has announced a bought deal for 12-million shares @ $25: these will be designated “Non-Cumulative Preferred Shares, Series 14”. The anticipated closing date is January 24, 2007.
The redemption schedule is:
| Redemption Schedule, BNS Ser 14 | ||
| From | To | Price |
| 2012-4-26 | 2013-4-25 | $26.00 |
| 2013-4-26 | 2014-4-25 | $25.75 |
| 2014-4-26 | 2015-4-25 | $25.50 |
| 2015-4-26 | 2016-4-25 | $25.25 |
| 2016-4-26 | INFINITE DATE | $25.00 |
More later.
Later, more:
| Comparator Characteristics | |||||
| Issue | BNS.PR.K | CM.PR.I | RY.PR.D | BMO.PR.? | BNS.PR.? |
| Dividend | 1.20 | 1.175 | 1.125 | 1.125 | 1.125 |
| Quote | 25.85-96 | 25.16-36 | 25.11-20 | 25.00 Issue | 25.00 Issue |
| Redemption Schedule Start | 2010-4-28 | 2012-1-31 | 2012-02-24 | 2012-2-25 | 2012-4-26 |
| Price due to base-rate | 24.25 | 24.07 | 23.45 | 23.38 | 23.37 |
| Price due to short-term | 0.03 | 0.04 | 0.03 | 0.03 | 0.03 |
| Price due to long-term | 0.49 | 0.49 | 0.48 | 0.46 | 0.46 |
| Price due to error | -0.01 | 0.02 | -0.03 | 0.00 | 0.00 |
| Price due to Credit Spread (Low) | N/A | -0.54 | N/A | N/A | N/A |
| Intrinsic Curve Price | 24.77 | 24.08 | 23.94 | 23.87 | 23.86 |
| Price due to Liquidity | 0.52 | 1.50 | 1.51 | 1.51? | 1.51? |
| Curve Price | 25.29 | 25.58 | 25.45 | 25.38? | 25.37? |
| Yield-to-Worst (after Tax) | 3.37% | 3.66% | 3.58% | 3.58% | 3.57% |
| Yield-to-Worst (Pre-Tax) | 4.24% | 4.61% | 4.51% | 4.50% | 4.49% |
So … the new issue looks like a good, but not great, purchase at the issue price.
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