{"id":11848,"date":"2010-08-12T20:44:44","date_gmt":"2010-08-13T00:44:44","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11848"},"modified":"2010-08-12T20:44:44","modified_gmt":"2010-08-13T00:44:44","slug":"wfs-pr-a-on-review-negative-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11848","title":{"rendered":"WFS.PR.A on Review-Negative by DBRS; Warrant Prospectus Filed"},"content":{"rendered":"

DBRS has announced<\/a> that it:<\/p>\n

has today placed the Pfd-4 (high) rating of the Preferred Shares issued by World Financial Split Corp. (the Company) Under Review with Negative Implications.<\/p>\n

In February 2004, the Company raised gross proceeds of approximately $471 million by issuing 18.85 million Preferred Shares at $10 each and an equal number of Class A Shares at $15 each.
…<\/b>
The NAV and the dividend income of the Portfolio have declined significantly over the past few years because of the high Portfolio concentration in global financial institutions. The current dividend income of the Portfolio does not fully cover the Preferred Share distribution; however, less than one year remains until the termination of the Company, mitigating the negative impact of the shortfall.<\/p>\n

The NAV of the Company declined over the past four months, dropping from $13.35 on March 31, 2010, to $11.60 on July 31, 2010. The current downside protection available to the Preferred Shareholders is approximately 14% (as of July 31, 2010). As a result of the decreased protection available to the Preferred Shares, the rating has been placed Under Review with Negative Implications. The resolution of the Under Review status will depend on the performance of the Portfolio during August and September.<\/p>\n

The final redemption date for both classes of shares issued is June 30, 2011.<\/p><\/blockquote>\n

I must say, I find the “Review-Negative” status a little surprising for a SplitShare corporation. I mean, the whole rating process is supposed to be formula driven, isn’t it? What are they reviewing? It’s not like the company has announced surprisingly poor earnings and they have to wait a month until they can meet management.<\/p>\n

Waiting for performance for August and September to be learnt? That doesn’t make any sense to me at all. What is the percentage chance, NOW, of the issue defaulting?<\/p>\n

But I suppose they had to say something – the warrant issue prospectus was filed today<\/a>:<\/p>\n

World Financial Split Corp. (the “Fund”) is pleased to announce that it has filed a final short form prospectus relating to an offering of Warrants to holders of its Class A Shares. Each Class A shareholder of record on August 23, 2010 will receive one Warrant for each Class A Share held.<\/p>\n

Each Warrant will entitle its holder to acquire one Class A Share and one Preferred Share upon payment of the subscription price of $11.43.<\/p>\n

The Toronto Stock Exchange has conditionally approved the listing of the Warrants under the symbol WFS.WT.A and the Class A Shares and the Preferred Shares issuable upon the exercise thereof. It is expected that the Warrants will commence trading on August 19, 2010 and will remain trading until noon (Toronto time) on the expiry date of January 17, 2011.<\/p><\/blockquote>\n

WFS.PR.A was last mentioned on PrefBlog when they announced preparations for the warrant issue<\/a>. WFS.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"

DBRS has announced that it: has today placed the Pfd-4 (high) rating of the Preferred Shares issued by World Financial Split Corp. (the Company) Under Review with Negative Implications. In February 2004, the Company raised …<\/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-11848","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11848","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=11848"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11848\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}