Emera Inc. has announced a new issue, but no press release is available as yet.<\/p>\n
Issue Name: Emera Inc. Cumulative 5-Year Rate Reset First Preferred Shares, Series A<\/p>\n
Issue Size: 6-million shares (= $150-million) + greenshoe 2-million (=$50-million)<\/p>\n
Dividends: 4.40% p.a. (=$1.10), payable quarterly F\/M\/A\/N. Initial dividend payable 2010-8-15 for $0.2230, assuming closing 2010-6-2. Dividend resets on Exchange Dates to 5-Year Canadas + 184bp.<\/p>\n
Redeemable on Exchange Dates at $25.00.<\/p>\n
Exchangeable to and from Floaters on Exchange Dates. Floaters pay 3-month Bills +184bp, reset quarterly, and are callable on Exchange Dates at 25.00 and at $25.50 at all other times.<\/p>\n
First Exchange Date is 2015-8-15. Subsequent Exchange Dates every five years following.<\/p>\n
Ratings are split: S&P has them at P-2(low); DBRS calls the Pfd-3(high)<\/p>\n
Emera has no preferred shares currently outstanding. Nova Scotia Power is one of its wholly owned subsidiaries<\/a>, but that company has only one wierd, lightly traded retractible (NSI.PR.D).<\/p>\n The closest comparators in the PerpetualDiscount field are TCA.PR.X and TCA.PR.Y (not very good, since TCA is a regulated sub of TRP and a better credit, but we do what we can), which are currently trading to yield about 6.2%. Plugging that in to the BERS Calculation routine<\/a> shows a Break-Even Rate Shock of 277bp; down significantly from SLF.PR.G at 384bp<\/a> and BNS.PR.Y at 318bp<\/a> but still ludicrously overpriced.<\/p>\n CIU.PR.B is worthy of note as a comparator, yielding 4.32% to its expected call date 2014-6-1 and is far more likely to be called. TRP.PR.A yields 4.35% to perpetuity, given a constant GOC-5 rate of 2.32%. Applying that rate to the EMA issue results in a yield-to-perpetuity of 4.24%.<\/p>\n The Bank of Canada quoted<\/a> five-years at 2.62% as of May 21, but Canadian Bond Indices quotes<\/a> them at 2.35% at the close today, so take your pick.<\/p>\n","protected":false},"excerpt":{"rendered":" Emera Inc. has announced a new issue, but no press release is available as yet. Issue Name: Emera Inc. Cumulative 5-Year Rate Reset First Preferred Shares, Series A Issue Size: 6-million shares (= $150-million) + …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-10973","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10973","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=10973"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10973\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}