{"id":10009,"date":"2010-03-04T20:25:15","date_gmt":"2010-03-05T00:25:15","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=10009"},"modified":"2010-03-04T20:25:15","modified_gmt":"2010-03-05T00:25:15","slug":"gwoprm-drops-on-light-first-day-trading-still-expensive","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=10009","title":{"rendered":"GWO.PR.M Drops on Light First-Day Trading; Still Expensive"},"content":{"rendered":"

Great-West Lifeco has announced<\/a>:<\/p>\n

the closing of its previously announced offering of 6,000,000 Non-Cumulative First Preferred Shares, Series M through a syndicate of underwriters co-led by BMO Capital Markets, RBC Capital Markets and Scotia Capital to raise gross proceeds of $150 million. The shares will be posted for trading on the Toronto Stock Exchange under the symbol “GWO.PR.M”.<\/p>\n

The Series M Shares were priced at $25.00 per share and carry a 5.80% annual dividend. The net proceeds will be used by the Company to fund the redemption of the Non-Cumulative First Preferred Shares, Series D on March 31, 2010.<\/p><\/blockquote>\n

The issue traded 160,180 shares in a range of 24.50-70 before closing at 24.62-65, 50×11. It is 5.80% Straight<\/a> announced February 23.<\/p>\n

Vital statistics are:<\/p>\n

\n\n\n
GWO.PR.M<\/td>\nPerpetual-Discount<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-03-04
\nMaturity Price : 24.41
\nEvaluated at bid price : 24.62
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Comparables are: <\/p>\n

\n\n\n\n\n\n\n\n\n\n
GWO PerpetualDiscount Comparables<\/td>\n<\/tr>\n
Ticker<\/td>\nDividend<\/td>\nQuote<\/td>\nBid YTW<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\n1.125<\/td>\n18.76-83<\/td>\n6.01%<\/td>\n<\/tr>\n
GWO.PR.H<\/td>\n1.2125<\/td>\n20.26-44<\/td>\n6.00%<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\n1.30<\/td>\n21.40-45<\/td>\n6.09%<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\n1.4125<\/td>\n23.55-68<\/td>\n6.00%<\/td>\n<\/tr>\n
GWO.PR.M<\/b><\/td>\n1.45<\/td>\n24.62-65<\/td>\n5.92%<\/td>\n<\/tr>\n
GWO.PR.F<\/td>\n1.475<\/td>\n24.64-80<\/td>\n5.98%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Lynx-eyed Assiduous Readers will note that prices of comparators has dropped since the announcement, but yields have barely changed. These issues all went ex-Dividend on March 1; the Power Group likes to announce new straight issues shortly prior to the ex-Date so that comparators will be full of dividend and hence have a lower Current Yield.<\/p>\n

It is worth noting that not only is GWO.PR.M still expensive when priced as a perpetual annuity, but also that there is basically no allowance for Implied Volatility<\/a> in the group prices – which makes it more expensive still.<\/p>\n","protected":false},"excerpt":{"rendered":"

Great-West Lifeco has announced: the closing of its previously announced offering of 6,000,000 Non-Cumulative First Preferred Shares, Series M through a syndicate of underwriters co-led by BMO Capital Markets, RBC Capital Markets and Scotia Capital …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-10009","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10009"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10009\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}