There were five resets announced 2019-12-2, as follows:
| Ticker | Issue Reset Spread |
Announced Rate |
Implied GOC-5 Yield |
| FFH.PR.C | 315bp | 4.709% | 1.559% |
| TRP.PR.A | 192bp | 3.479% | 1.559% |
| BPO.PR.A | 315bp | 4.709% | 1.559% |
| HSE.PR.C | 313bp | 4.636% | 1.506% |
| AZP.PR.B | 418bp | 5.67% | 1.490% |
The first three issues listed are consistent and the implied GOC-5 rate of 1.559% isn’t anything that raises any eyebrows around here … but the bottom two are a puzzle. I believe that all these calculations should be based on the rate at 10:00am December 2 … though it has been shown that prospectuses are imprecise regarding the details.
An inquiry directed to Atlantic Power’s Investor Relations Department elicited a claim that the GOC-5 yield was measured at the close, November 29, and that this was in accordance with the indenture. Well, it may or may not be, but my reading of the prospectus (available on SEDAR, not allowed to link directly of course, which is a disgrace, so the regulators say you have to search for “Atlantic Power Preferred Equity Ltd. Oct 21 2009 17:20:19 ET Final short form prospectus – English PDF 229 K”) suggests the correct time should have been 10am (Toronto time) on 2019-12-2.
An inquiry directed to Husky Energy’s Investor Relations Department has not yet been answered. My thanks to Assiduous Reader PG who brought this to my attention.
Inquiries continue.
Update, 2019-12-4: AZP will issue a press release on December 5, I am told. HSE has not yet responded to my two eMails asking them to specify the date and time as of which the GOC-5 yield was measured … but they’ve got a lot going on right now so I’ll wait another day before sending eMail #3.