Here’s an odd one! I was asked about this issue today – but it’s such a small issue it’s not in my database. So, I’m putting a short description here, just to make sure I have the information handy in the future.
The company is Pacific Northern Gas, soon to become famous as the corporation with the world’s slowest website.
According to the prospectus for common shares dated 2005-4-6 (available on SEDAR):
6 3/4% Cumulative Redeemable Preferred Shares
The Preferred Shares are entitled to the payment of Ñxed cumulative preferential cash dividends at the rate of 63/4% per annum on the amounts from time to time paid up thereon as when declared by the board of directors of the Company, have priority in the event of the liquidation, dissolution or winding up of the Company over the Common Shares, are non-voting and are redeemable at the option of the Company at $26 per share plus any accrued and unpaid dividends at the date of redemption. The Company may not create shares ranking prior to the Preferred Shares but may create and issue other shares ranking on parity with those shares.
Annual dividends are $1.6875; the par value is $25.00. There are only 200,000 of these shares outstanding.
One wonders why such a small issue remains outstanding. Hey! Any investment bankers out there? I know that in the States, many of their 8,000 banks issue preferred shares not to the public, but to CDO packagers and resellers. There must be quite a few Canadian corporations that would love to issue $5-million or so in prefs, but can’t because the cost is ridiculous. Why don’t we have CDO packagers and resellers in Canada?
Or – even better – an ETF! Start it off with a $100-million IPO (the insurers could supply suitable product for the initial holdings out of their back pocket) and then make it grow with share exchanges: you give me a $5-million private placement, I’ll give you 200,000 shares, which you can then sell.
This entry was posted on Tuesday, January 12th, 2010 at 7:18 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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PNG.PR.A
Here’s an odd one! I was asked about this issue today – but it’s such a small issue it’s not in my database. So, I’m putting a short description here, just to make sure I have the information handy in the future.
The company is Pacific Northern Gas, soon to become famous as the corporation with the world’s slowest website.
According to the prospectus for common shares dated 2005-4-6 (available on SEDAR):
Annual dividends are $1.6875; the par value is $25.00. There are only 200,000 of these shares outstanding.
One wonders why such a small issue remains outstanding. Hey! Any investment bankers out there? I know that in the States, many of their 8,000 banks issue preferred shares not to the public, but to CDO packagers and resellers. There must be quite a few Canadian corporations that would love to issue $5-million or so in prefs, but can’t because the cost is ridiculous. Why don’t we have CDO packagers and resellers in Canada?
Or – even better – an ETF! Start it off with a $100-million IPO (the insurers could supply suitable product for the initial holdings out of their back pocket) and then make it grow with share exchanges: you give me a $5-million private placement, I’ll give you 200,000 shares, which you can then sell.
This entry was posted on Tuesday, January 12th, 2010 at 7:18 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.