A new issue from this credit following up their 4.25% 5-Year issue from earlier this year.
They are issuing 8-million shares at 25.00, paying 5.00% p.a. quarterly. The first dividend will be for $0.37671, payable Sept. 26, based on an anticipated closing date of June 8.
Another relatively complex redemption table:
| YPG Series 2 Redemption Schedule | ||
| From | To | Price |
| 2007-6-30 | 2008-6-29 | $27.25* |
| 2008-6-30 | 2009-6-29 | 27.00* |
| 2009-6-30 | 2010-6-29 | 26.75* |
| 2010-6-30 | 2011-6-29 | 26.50* |
| 2011-6-30 | 2012-6-29 | 26.25* |
| 2012-6-30 | 2013-6-29 | 26.00 |
| 2013-6-30 | 2014-6-29 | 25.75 |
| 2014-6-30 | 2015-6-29 | 25.50 |
| 2015-6-30 | 2016-6-29 | 25.25 |
| 2016-6-30 | Infinite Date | 25.00 |
| Redemptions for which the price is marked with an asterisk may only be initiated in certain circumstances All redemptions may be satisfied by exchange of Trust Units at a discount to market price, at the option of the Corporation. |
||
The shares are retractible by the holder on and after June 30, 2017, at $25.00.
This is a “Bought underwritten public issue”, with various escape clauses.
The S&P rating is P-3; DBRS rates it Pfd-3(high).
Update: This issue has been added to the HIMIPref™ database with the preIssue securityCode P78000.
Ah, the joys of being an “Operating Retractible”! The curvePrice on this one is $26.76:
Price due to base-rate : 24.65
Price due to short-term : -0.80
Price due to long-term : 2.04
Price due to Interest Income : 0.00
Price to to Cumulative Dividends : 0.00
Price due to SplitShareCorp : 0.00
Price due to Retractibility : 1.10
Price due to Credit Spread (2) : 0.00
Price due to Liquidity : 0.55
Price due to Floating Rate : 0.00
Price due to Credit Spread (3) : -0.86
Price due to error : 0.05
Price due to Credit Spread (High) : 0.02
Price due to Credit Spread (Low) : 0.00
However, before anybody starts mortgaging the farm here, I’d better note that:
- Pfd-3 issues are very hard to value – they don’t always act as much like fixed income instruments as one might like.
- Which is one reason why I don’t recommend such issues to be held other than as a small (less than 5% in a single name; less than 10% total) component of a well diversified portfolio.
- The 5-year is trading about $1 below its curve Price
[…] The new Yellow Pages Group 10-year retractible, announced May 23, disfigured the market with their presence today, closing at 23.89-09, 10×16, on reasonable volume of 49,400 shares. […]