{"id":14452,"date":"2011-03-17T08:09:46","date_gmt":"2011-03-17T12:09:46","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14452"},"modified":"2011-03-17T08:09:46","modified_gmt":"2011-03-17T12:09:46","slug":"nbf-pr-a-upgraded-to-pfd-3high-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14452","title":{"rendered":"NBF.PR.A Upgraded to Pfd-3(high) by DBRS"},"content":{"rendered":"<p>DBRS <a href=\"http:\/\/www.dbrs.com\/research\/238527\/nb-split-corp\/dbrs-upgrades-nb-split-corp-preferred-shares-to-pfd-3-high.html\">has announced<\/a> that it:<\/p>\n<blockquote><p>has today upgraded the rating of the Preferred Shares issued by NB Split Corp. (the Company) to Pfd-3 (high) from Pfd-3. In February 2007, the Company raised approximately $100 million by issuing Preferred Shares (1,436,369 shares at $32.72 each) and Capital Shares (2,872,738 shares at $18.45 each). The final redemption date for both the Preferred Shares and the Capital Shares is February 15, 2012 (the Termination Date).<\/p>\n<p>The net proceeds from the offering were used to purchase a portfolio of common shares (the Portfolio) of the National Bank of Canada (NB). Dividends received on the Portfolio are used to pay a fixed cumulative quarterly dividend of $0.3886 per Preferred Share to yield 4.75% per annum. Based on the current dividend yield on the NB common shares, the Preferred Share dividend coverage is approximately 1.2 times. As a result, the Preferred Share dividends are currently funded entirely from dividends received on the Portfolio.<\/p>\n<p>The rating of the Preferred Shares was last confirmed on August 10, 2010. Since then, the net asset value of the Company has increased by approximately 25%. The current downside protection (as of March 14, 2011) is approximately 57%. The upgrade of the rating of the Preferred Shares is primarily based on the increase in downside protection since August 2010.<\/p>\n<p>The main constraints to the rating are the following:<\/p>\n<p>(1) The downside protection provided to holders of the Preferred Shares is dependent on the value of the shares in the Portfolio.<\/p>\n<p>(2) The Portfolio is entirely concentrated in the common shares of NB.<\/p>\n<p>(3) Volatility of price and changes in the dividend policies of NB may result in significant reductions in downside protection from time to time.<\/p><\/blockquote>\n<p>There were just over 800,000 NBF.PR.A outstanding on 2010-6-30 according to the <a href=\"http:\/\/www.nbsplit.com\/nbsplitdoc\/20100630_NBF_FS.pdf\">interim financial statements<\/a>, with a book value of about $26.5-million.<\/p>\n<p>NBF.PR.A was last mentioned on PrefBlog in December 2010, when there was a <a href=\"http:\/\/www.prefblog.com\/?p=9046\">partial call for redemption<\/a>. NBF.PR.A is not tracked by HIMIPref&trade;. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>DBRS has announced that it: has today upgraded the rating of the Preferred Shares issued by NB Split Corp. (the Company) to Pfd-3 (high) from Pfd-3. In February 2007, the Company raised approximately $100 million &hellip;<\/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-14452","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14452","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=14452"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14452\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}