{"id":22096,"date":"2013-06-01T02:06:53","date_gmt":"2013-06-01T06:06:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22096"},"modified":"2013-06-01T02:06:53","modified_gmt":"2013-06-01T06:06:53","slug":"dc-pr-a-converted-into-dc-pr-c-and-drm-pr-a","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22096","title":{"rendered":"DC.PR.A Converted Into DC.PR.C and DRM.PR.A"},"content":{"rendered":"<p>Dundee Corporation <a href=\"http:\/\/www.dundeecorp.com\/pdf\/2013-05-28-ShareTerms.pdf\">announced on May 28<\/a>:<\/p>\n<blockquote><p>is confirming the terms of the preference shares to be issued by each of Dundee and DREAM Unlimited Corp. (\u201cDREAM\u201d) pursuant to the previously announced corporate restructuring of Dundee through a tax efficient plan of arrangement (the \u201cArrangement\u201d).<\/p>\n<p>Dundee\u2019s First Preference Shares, Series 1 have a liquidation value of $25.00 per share. Pursuant to the Arrangement, holders of Dundee\u2019s First Preference Shares, Series 1 will receive, for each such share held, (i) a new First Preference Share, Series 4 of Dundee with a liquidation amount of $17.84 (compared with $18.67, as previously estimated) and an annual dividend of 5%, and (ii) a First Preference Share, Series 1 of DREAM with a liquidation amount of $7.16 (compared with $6.33, as previously estimated) and an annual dividend of 7%, such shares having the redemption rights described below. The combined liquidation value of the two new shares that will be issued will equal the $25.00 original liquidation value of each of Dundee\u2019s First Preference Shares, Series 1.<\/p>\n<ul>\n<li>\u2022 Dundee\u2019s First Preference Shares, Series 4 &#8211; Redemption Rights\n<ul>\n<li>Dundee\u2019s First Preference Shares, Series 4 will be redeemable, at the option of Dundee, at any time prior to June 30, 2013 at $18.38 per share, at any time on or after June 30, 2013 and prior to June 30, 2014 at $18.20 per share, at any time on or after June 30, 2014 and prior to June 30, 2015 at $18.02 per share, and at any time on or after June 30, 2015 at $17.84 per share. In addition, Dundee\u2019s First Preference Shares, Series 4 will be redeemable, at the option of the holder, at any time on or after June 30, 2016 at $17.84 per share.<\/ul>\n<li>\u2022 DREAM\u2019s First Preference Shares, Series 1 &#8211; Redemption Rights\n<ul>\n<li>DREAM\u2019s First Preference Shares, Series 1 will be redeemable, at the option of DREAM, at any time prior to June 30, 2013 at $7.37 per share, at any time on or after June 30, 2013 and prior to June 30, 2014 at $7.30 per share, at any time on or after June 30, 2014 and prior to June 30, 2015 at $7.23 per share, and at any time on or after June 30, 2015 at $7.16 per share. In addition, DREAM\u2019s First Preference Shares, Series 1 will be redeemable, at the option of the holder, at any time on or after December 31, 2013 and prior to December 31, 2014 at $7.30 per share, at any time on or after December 31, 2014 and prior to December 31, 2015 at $7.23 per share, and at any time on or after December 31, 2015 at $7.16 per share.<\/ul>\n<\/ul>\n<p><b>Expected DREAM Capitalization<\/b><\/p>\n<p>Based on the number of Class A Subordinate Voting Shares, Class B Common Shares and First Preference Shares, Series 1 of Dundee outstanding as of May 27, 2013, Dundee expects that there will be an aggregate 75,730,459 Class A Subordinate Voting Shares and Class B Common Shares of DREAM outstanding upon completion of the Arrangement, anticipated for May 30, 2013, and 6,000,000 First Preference Shares, Series 1, with an aggregate liquidation amount of approximately $43 million.<\/p><\/blockquote>\n<p>Both DC.PR.C and DRM.PR.A will be tracked by HIMIPref&trade; despite not having credit ratings. This is because they are derived from DC.PR.A, which used to have a credit rating, and has been grandfathered. They will be assigned to the Scraps index on credit concerns.<\/p>\n<p>Vital statistics are:<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td>DRM.PR.A<\/td>\n<td>OpRet<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Soft Maturity<br \/>\nMaturity Date\t: 2013-12-30<br \/>\nMaturity Price  : 7.30<br \/>\nEvaluated at bid price : 7.35<br \/>\nBid-YTW : 7.74 %<\/td>\n<\/tr>\n<tr>\n<td>DC.PR.C<\/td>\n<td>OpRet<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Soft Maturity<br \/>\nMaturity Date\t: 2016-06-29<br \/>\nMaturity Price  : 17.84<br \/>\nEvaluated at bid price : 17.84<br \/>\nBid-YTW : 5.33 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dundee Corporation announced on May 28: is confirming the terms of the preference shares to be issued by each of Dundee and DREAM Unlimited Corp. (\u201cDREAM\u201d) pursuant to the previously announced corporate restructuring of Dundee &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-22096","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22096","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=22096"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22096\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}