16 Responses to “November 20, 2023”

1. Dan Good says:

   November 21, 2023 at 2:31 pm

   Dundee is making a substantial issuer bid for more than 1/2 of their floating rate preferred shares at $20.50 which yield just over 11% currently. The interesting note is their preferred shares that reset with the 5 year bond rate plus 4% are exchangeable for the floating issue and also reset in September of 2024 I believe. So theoretically these shares should trade at the same price less the small difference in dividends paid out over 9 months and yet the 5 year resets last traded nearer $18 than $20.

2. niagara says:

   November 21, 2023 at 3:39 pm

   The annual dividend difference is not inconsequential. The fixed is paying $1.32, the floater is paying about $2.28. Also, the bid-ask on the fixed rate series is $18.17-$19.54 (as of 3:35pm) so not too easy to even pick up the fixed prefs.

3. DR says:

   November 21, 2023 at 8:00 pm

   90c or so for 10 months assuming no BOC (and thus prime) cuts in interim. the offer is only for floaters? they oughta bid for both sides just at slightly different ranges.

   quite impressed by that decision. these guys destroyed (or disappeared) untold amounts of value with their past capital allocation efforts.

   nice to see. may be the first SIB yet for sub par prefs?

4. CanSiamCyp says:

   November 21, 2023 at 8:01 pm

   ALA.PR.E redemption confirmed:

   https://money.tmx.com/quote/ALA/news/8977943420886923/ALTAGAS_ANNOUNCES_INTENTION_TO_REDEEM_ALL_OUTSTANDING_SERIES_E_PREFERRED_SHARES

   Question: ALA announced that the redemption will occur on 31 Dec. (Sunday) … meaning that the cash will appear in a holder’s account on 02 Jan. However, I assume that given the 31 Dec. redemption/payable date that this will be a 2023 taxation year event. Correct?

5. Avoid the Herd says:

   November 21, 2023 at 9:28 pm

   Dundee Pres – 4 more dividends until reset next September. So, the D / B differential should be slightly less than a loonie. Macro analysts expect the Bank of Canada to start lowering rates in Q2 2024, with a small minority believing the first cut will be announced in Q1.

   Assuming the SIB is fully subscribed, the face value of the remaining preferred shares will total approx $45 million, compared to shareholders’ equity of approx $300 million.

6. DC.PR.D: Substantial Issuer Bid « PrefBlog says:

   November 21, 2023 at 9:52 pm

   […] from the loan following the purchase of tendered shares. Thanks to Assiduous Reader Dan Good for bringing this to my attention, to Avoid the Herd for foreshadowing the announcement and to DR and niagara for helping me […]

7. ALA.PR.E To Be Redeemed « PrefBlog says:

   November 21, 2023 at 10:37 pm

   […] Thanks to Assiduous Reader CanSiamCyp for bringing this to my attention! […]

8. RAV4guy says:

   November 22, 2023 at 11:14 am

   CanSiamCyp says: “However, I assume that given the 31 Dec. redemption/payable date that this will be a 2023 taxation year event. Correct?”

   In reply to this question I can say I had the same question in regards to the redemption of NPI.PR.C as of Dec. 31, 2022 (Saturday) and paid Jan. 3, 2023. This transaction was not reported as a 2022 transaction by the brokerage holding my account and they specifically told me it was a 2023 transaction. It should be a 2024 transaction for tax purposes.

9. RAV4guy says:

   November 22, 2023 at 11:18 am

   For more clarity my last sentence should have been:

   I expect the ALA.PR.E redemption will be a 2024 transaction for tax purposes.

10. jiHymas says:

    November 24, 2023 at 9:37 am

    90c or so for 10 months assuming no BOC (and thus prime) cuts in interim. the offer is only for floaters? they oughta bid for both sides just at slightly different ranges.

    The lock-up agreement probably played some role in the decision:

    In connection with the Offer, the Corporation has entered into lock-up agreements (the “Lock-up Agreements”) with each of Stornoway Recovery Fund LP and Ravensource Fund (the “Locked-up Shareholders”) pursuant to which, among other things, and subject to the terms and conditions set out therein, the Locked-up Shareholders have agreed to tender to the Offer all of the Series 3 Shares held by them as at the date of the Lock-up Agreements. As at the date of the Lock-up Agreements, the Locked-up Shareholders hold an aggregate of 499,650 Series 3 Shares representing approximately 30.48% of the issued and outstanding Series 3 Shares as at November 20, 2023.

    Presumably, Stornoway & Ravensource hold lots of the Ds and want to get rid of them all at an attractive price. Including the Bs in the SIB would increase the chance that their tender would be pro-rated.

11. DR says:

    November 24, 2023 at 10:24 am

    true ‘dat. comment first, read later. that’s how i roll

    although in my defence, the unholy obsession with current yield undoubtedly played a roll, albeit to a much lesser extent than than the lockup.

12. Dan Good says:

    August 14, 2024 at 10:17 am

    TORONTO, Aug. 14, 2024 (GLOBE NEWSWIRE) — Dundee Corporation (TSX: DC.A, DC.PR.B and DC.PR.D) (“Dundee” or the “Company”) announces that it intends to exercise its right to redeem all currently outstanding cumulative 5-year rate reset first preference shares, series 2 (the “Series 2 Shares”) and cumulative floating rate first preference shares, series 3 (the “Series 3 Shares”) on September 30, 2024 at a price of $25.00 per share, together with any accrued and unpaid dividends. The Company currently has outstanding 1,145,362 Series 2 Shares and 724,982 Series 3 Shares.

13. Dan Good says:

    August 14, 2024 at 10:35 am

    DC.PR.B
    DUNDEE CORPORATION 1ST PFD SER 2 $25.16 +$2.92 +13.13%

    DC.PR.D
    DUNDEE CORP SER 3 PFD SHS $25.25 +$2.25 +9.78

    I was playing the difference in price. Getting an extra 3% should be enough to get me a cup of coffee at lunch.

14. DR says:

    August 14, 2024 at 4:17 pm

    ahh, ‘ol dundee…

    when first entered rate resets in 2015/16 this was one of my names. not sure the pref traded below the common (in absolute terms) but was dang close if memory serves. once the common fell below $2, i was looking for first reasonable exit on prefs which in time came

    but here we are, 8 yrs later. common having gone from 10ish to 1ish, while the prefs went from 10ish to par. + 8 yrs of pref divs and nada on common.

    the poster child for prefs vs common!

15. Dan Good says:

    August 14, 2024 at 5:19 pm

    Not just a poster child but a terrific example of Companies going bad and yet still holding value for the preferreds with a “margin of safety”. There are many other examples (such as Husky Energy) where the preferreds and debentures are painted with the same brush as the commons and in reality their image should not be tarnished.

16. DC.PR.B & DC.PR.D To Be Redeemed « PrefBlog says:

    August 14, 2024 at 9:24 pm

    […] Thanks to Assiduous Reader Dan Good for bringing this to my attention! […]