{"id":22059,"date":"2013-05-24T20:39:14","date_gmt":"2013-05-25T00:39:14","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22059"},"modified":"2013-05-24T20:39:14","modified_gmt":"2013-05-25T00:39:14","slug":"may-24-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22059","title":{"rendered":"May 24, 2013"},"content":{"rendered":"

Loblaw’s will get out of the real-estate business<\/a>:<\/p>\n

Loblaw Cos. Ltd. filed a preliminary prospectus Friday for a planned $7-billion real estate investment trust for its sizable land portfolio under the name Choice Properties Real Estate.<\/p>\n

The units of the REIT will be priced at $10, comprised of 425 properties and 35.3-million square feet of leasable space. It includes 415 retail properties, an office complex and nine warehouse properties.<\/p>\n

The total number of units to be offered was not disclosed. A final prospectus will be released in July.<\/p>\n

Loblaw says the value of the initial properties inside the REIT is between $7.25-billion and $7.4-billion and represents about 75% of its owned real estate portfolio.<\/p><\/blockquote>\n

In the wake of this, DBRS confirmed L.PR.A at Pfd-3<\/a>:<\/p>\n

On closing and going forward, it is expected that Loblaw will hold a significant majority ownership interest in the REIT through ownership of REIT units, as well as all of the Class B limited partnership units of the LP (which are economically equivalent to and exchangeable for units of the REIT). The Company believes that as the REIT\u2019s key tenant, this structure will allow it to retain a high degree of operational flexibility. In addition, Loblaw will hold all of the outstanding Class C limited partnership units of the LP. In conjunction with the offering, George Weston Limited will purchase $200 million of units from the REIT at the IPO price.<\/p>\n

Loblaw will also receive notes from the REIT which are senior unsecured debt of the REIT and will rank pari passu with all future senior unsecured indebtedness of the REIT. Concurrent with the IPO, the REIT is expected to offer senior unsecured debentures, the proceeds of which are expected to be used to repay a portion of the indebtedness owing to Loblaw. Loblaw is expected to use such proceeds to repay its own maturing indebtedness.<\/p>\n

DBRS believes that this structure effectively maintains Loblaw\u2019s current credit ratings because of the Company\u2019s clear intent to continue to own and control its real estate while using intercompany notes to maintain consolidated leverage levels while effectively transferring an appropriate proportion of financial leverage to the REIT.<\/p><\/blockquote>\n

George Weston Ltd., proud issuer of WN.PR.A, WN.PR.C, WN.PR.D and WN.PR.E, was also confirmed at Pfd-3<\/a>:<\/p>\n

The GWL confirmation is based on DBRS\u2019s confirmation of Loblaw\u2019s ratings at BBB (see separate press release; Loblaw is 63% owned by GWL), as well as GWL\u2019s relatively stable operating performance and the Company\u2019s significant cash resources. GWL\u2019s ratings reflect its holding in Loblaw and the Company\u2019s strong brands and efficient operations, balanced by a continuing volatile input cost environment and the mature nature of the bakery industry.<\/p>\n

DBRS will continue to monitor GWL\u2019s decisions on the deployment of its remaining cash, cash equivalents and short-term investments, and will assess any potential impact on the Company\u2019s credit risk profile at such time.<\/p>\n

GWL\u2019s liquidity remains commensurate with the R-2 (high) rating category, reflecting the Company\u2019s high levels of cash on hand and marketable investments, positive free cash flow generating capacity and its manageable debt levels and maturity schedule.<\/p><\/blockquote>\n

It remains a mystery to me why any business would have on-line banking<\/a>:<\/p>\n

Thieves drained $800,000 from a fuel distribution company in the US state of North Carolina earlier this month – a loss that the company thinks might have something to do with its bank having recently upgraded its security system.
…<\/b>
David Alexander, J.T. Alexander & Son\u2019s president, told Krebs that the loss was \u201cpretty substantial\u201d and \u201cpainful\u201d for the small company, which employs a staff of only 15.<\/p>\n

The company typically spends less than $30,000 on its total payroll every two weeks. In five days, the crooks managed to steal more than a year’s worth of salaries.<\/p><\/blockquote>\n

I finally got caught up on my spam-cleaning for PrefBlog – it got out of control in May. The amount of spam is increasing horrendously: as of today, there are over 48,000 spam comments on file, which have all been received since I cleaned the database in January<\/a>. What was once a minor daily maintenance ritual is now not so minor!<\/p>\n

On the positive side, I did find a comment by a first-time poster<\/a>, travesty<\/i>, that got caught up in the net<\/a> but has now been approved. travesty<\/i> can now comment and see the comment immediately; it will also be more visible to me, so perhaps his next comment will receive a more timely reply … unless he is so irritated by the delay he doesn’t post any more …<\/p>\n

The Canadian preferred share market closed the week on a positive note, with PerpetualPremiums winning 7bp, FixedResets up 5bp and DeemedRetractibles gaining 3bp. Volatility was low. Volume was low … but with good size in some issues!<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2372 %<\/td>\n2,509.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n3.90 %<\/td>\n3.13 %<\/td>\n35,514<\/td>\n18.80<\/td>\n1<\/td>\n0.4536 %<\/td>\n4,213.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.77 %<\/td>\n3.02 %<\/td>\n78,988<\/td>\n19.63<\/td>\n4<\/td>\n-0.2372 %<\/td>\n2,709.3<\/td>\n<\/tr>\n
OpRet<\/td>\n4.82 %<\/td>\n0.84 %<\/td>\n68,038<\/td>\n0.11<\/td>\n5<\/td>\n0.1243 %<\/td>\n2,616.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.81 %<\/td>\n4.04 %<\/td>\n101,252<\/td>\n4.08<\/td>\n5<\/td>\n0.3592 %<\/td>\n2,986.5<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1243 %<\/td>\n2,392.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.19 %<\/td>\n3.82 %<\/td>\n96,901<\/td>\n0.52<\/td>\n32<\/td>\n0.0686 %<\/td>\n2,382.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n4.84 %<\/td>\n4.88 %<\/td>\n194,651<\/td>\n15.63<\/td>\n4<\/td>\n0.0811 %<\/td>\n2,690.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.87 %<\/td>\n2.72 %<\/td>\n253,330<\/td>\n3.12<\/td>\n81<\/td>\n0.0453 %<\/td>\n2,522.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.86 %<\/td>\n3.34 %<\/td>\n134,476<\/td>\n0.74<\/td>\n44<\/td>\n0.0326 %<\/td>\n2,464.1<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
VNR.PR.A<\/td>\nFixedReset<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-10-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.80
\nBid-YTW : 2.73 %<\/td>\n<\/tr>\n
ABK.PR.C<\/td>\nSplitShare<\/td>\n1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-10
\nMaturity Price : 31.64
\nEvaluated at bid price : 32.20
\nBid-YTW : 1.52 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
BMO.PR.O<\/td>\nFixedReset<\/td>\n700,462<\/td>\nRBC crossed blocks of 260,000 and 15,600, and bought 109,400 from CIBC, all at 26.08. TD crossed three blocks: 100,000 shares, 150,000 and 50,000, all at the same price again.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.08
\nBid-YTW : 2.08 %<\/td>\n<\/tr>\n
RY.PR.I<\/td>\nFixedReset<\/td>\n128,817<\/td>\nRBC crossed 125,000 at 25.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.52
\nBid-YTW : 2.20 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n113,348<\/td>\nNesbitt crossed 100,000 at 26.02.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
RY.PR.P<\/td>\nFixedReset<\/td>\n107,719<\/td>\nNesbitt crossed 100,000 at 25.73.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.69
\nBid-YTW : 2.53 %<\/td>\n<\/tr>\n
RY.PR.N<\/td>\nFixedReset<\/td>\n79,684<\/td>\nRBC crossed 75,000 at 25.70.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.72
\nBid-YTW : 2.37 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n77,385<\/td>\nNesbitt crossed 75,000 at 25.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.64
\nBid-YTW : 2.15 %<\/td>\n<\/tr>\n
There were 23 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.75 – 26.06
\nSpot Rate : 0.3100
\nAverage : 0.2096<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-23
\nMaturity Price : 25.50
\nEvaluated at bid price : 25.75
\nBid-YTW : 1.61 %<\/td>\n<\/tr>\n

CU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 26.61 – 26.90
\nSpot Rate : 0.2900
\nAverage : 0.2114<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.61
\nBid-YTW : 2.30 %<\/td>\n<\/tr>\n

MFC.PR.J<\/td>\nFixedReset<\/td>\nQuote: 26.30 – 26.60
\nSpot Rate : 0.3000
\nAverage : 0.2363<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.30
\nBid-YTW : 2.79 %<\/td>\n<\/tr>\n

W.PR.H<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.62 – 25.81
\nSpot Rate : 0.1900
\nAverage : 0.1279<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-23
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.62
\nBid-YTW : -16.52 %<\/td>\n<\/tr>\n

CM.PR.G<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.83 – 26.05
\nSpot Rate : 0.2200
\nAverage : 0.1592<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-23
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.83
\nBid-YTW : -17.27 %<\/td>\n<\/tr>\n

TD.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.35 – 26.55
\nSpot Rate : 0.2000
\nAverage : 0.1428<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-06-23
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.35
\nBid-YTW : -7.10 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Loblaw’s will get out of the real-estate business: Loblaw Cos. Ltd. filed a preliminary prospectus Friday for a planned $7-billion real estate investment trust for its sizable land portfolio under the name Choice Properties Real …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-22059","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22059","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=22059"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22059\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}