Dundee Corporation has announced:
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.
Jonathan Goodman, President and Chief Executive Officer of Dundee, commented:
“As we continue to strengthen our financial position, I am pleased to announce the retirement of all outstanding preferred shares. This strategic move underscores our commitment to simplifying our capital structure, enhancing shareholder value, and positioning the Company for long-term growth. We appreciate the support of all classes of shareholders and remain focused on delivering consistent returns for all our stakeholders. As an investor in development stage mining businesses, it is prudent for us at this time to significantly reduce our burn rate and cost of capital as we move our portfolio forward and look to bring cash flow into the Company.”
DC.PR.B was issued as a FixedReset, 5.688%+410, that commenced trading 2009-9-15 with a 6.75% coupon after being announced 2009-8-25. It reset to 5.688% effective 2014-09-30. I made no recommendation regarding conversion. DC.PR.B later reset to 5.284% effective September 30, 2019. I recommended retaining, or converting to, DC.PR.B. Instead, there was a small net conversion to DC.PR.D leaving DC.PR.B with about 61% of the total. Sixty-three per cent of this issue was cancelled in 2020 following a purchase offer. The issue is tracked by HIMIPref™ but has been relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.
DC.PR.D is a FloatingReset, +410, that came into existence via a partial conversion from DC.PR.B. It is tracked by HIMIPref™ but relegated to the Scraps – FloatingReset subindex on credit concerns.
Thanks to Assiduous Reader Dan Good for bringing this to my attention!
The reaction of Assiduous Reader DR is worth highlighting here:
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!
This entry was posted on Wednesday, August 14th, 2024 at 9:23 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.
DC.PR.B & DC.PR.D To Be Redeemed
Dundee Corporation has announced:
DC.PR.B was issued as a FixedReset, 5.688%+410, that commenced trading 2009-9-15 with a 6.75% coupon after being announced 2009-8-25. It reset to 5.688% effective 2014-09-30. I made no recommendation regarding conversion. DC.PR.B later reset to 5.284% effective September 30, 2019. I recommended retaining, or converting to, DC.PR.B. Instead, there was a small net conversion to DC.PR.D leaving DC.PR.B with about 61% of the total. Sixty-three per cent of this issue was cancelled in 2020 following a purchase offer. The issue is tracked by HIMIPref™ but has been relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.
DC.PR.D is a FloatingReset, +410, that came into existence via a partial conversion from DC.PR.B. It is tracked by HIMIPref™ but relegated to the Scraps – FloatingReset subindex on credit concerns.
Thanks to Assiduous Reader Dan Good for bringing this to my attention!
The reaction of Assiduous Reader DR is worth highlighting here:
This entry was posted on Wednesday, August 14th, 2024 at 9:23 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.