{"id":1369,"date":"2007-10-25T19:50:17","date_gmt":"2007-10-25T23:50:17","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1369"},"modified":"2007-10-25T19:50:17","modified_gmt":"2007-10-25T23:50:17","slug":"abkprc-considering-term-extension","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1369","title":{"rendered":"ABK.PR.C Considering Term Extension"},"content":{"rendered":"

Allbanc Split Corp. has announced<\/a>:<\/p>\n

The Company is scheduled to terminate on March 10, 2008. The Board of Directors is currently reviewing alternatives to termination, including a possible extension of the term of the Company, but there can be no assurance that any alternative will materialize.<\/p><\/blockquote>\n

Allbanc has been discussed here before<\/a> and the same things previously written still apply: the NAV per Unit<\/a> is $205.35 as of October 18, giving an asset coverage ratio of just under 3.4:1. Slightly more than half of the original issue has been retracted since their issuance in 2003; but a unit was worth only $102.81 back then.<\/p>\n

Geez, the banks in their underlying portfolio have done well in the past five years, eh? DBRS<\/a> continues to rate the issue as only Pfd-2; presumably the rating is constrained due to the focus on the financial sector, but the asset coverage suggests to me that Pfd-2(high) would be more appropriate.<\/p>\n

The split-share vehicle has actually been around since 1998; after the first five year term they reorganized<\/a> and:<\/p>\n

redeemed all of its outstanding Capital and Preferred Shares for an aggregate redemption amount of approximately $92 million and has completed its public offering of Class A Preferred Shares, raising approximately $55 million through the issuance of 897,444 Class A Preferred Shares. The Class A Preferred Shares were offered to the public by a syndicate of agents led by Scotia Capital Inc.<\/p>\n

Pursuant to a capital reorganization approved by shareholders on January 14, 2003, the holders of 897,444 Capital Shares converted such shares into 897,444 Class A Capital Shares on January 17, 2003. The Class A Preferred Shares were offered in order to fund in part, the redemption of Capital and Preferred Shares and to maintain the leveraged “split share” structure of the Company.<\/p><\/blockquote>\n

More details regarding the potential for another reorganization will be forthcoming. The capital unit-holders of long standing will be sitting on such ridiculously large unrealized capital gains that there will be a strong incentive for them to support a continuation of the company. Given that the preferreds pay a dividend of 5% of par,\u00a0any extension might have to sweeten the deal a little to get preferred shareholder support, if current market levels persist until decision time.<\/p>\n","protected":false},"excerpt":{"rendered":"

Allbanc Split Corp. has announced: The Company is scheduled to terminate on March 10, 2008. The Board of Directors is currently reviewing alternatives to termination, including a possible extension of the term of the Company, …<\/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-1369","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1369","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=1369"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1369\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}