{"id":2345,"date":"2008-07-03T17:49:16","date_gmt":"2008-07-03T21:49:16","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=2345"},"modified":"2008-07-03T17:49:16","modified_gmt":"2008-07-03T21:49:16","slug":"hpfpra-hpfprb-massive-retraction","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=2345","title":{"rendered":"HPF.PR.A & HPF.PR.B: Massive Retraction"},"content":{"rendered":"

Lawrence Asset Management has announced<\/a>:<\/p>\n

that 680,998 HI PREFS Series 1 Shares (TSX: HPF.PR.A) and 207,662 HI PREFS Series 2 Shares (TSX: HPF.PR.B) were submitted for the annual redemption on June 30, 2008. Subsequent to the annual redemption there are 410,956 Series 1 Shares issued and outstanding and 800,792 Series 2 Shares issued and outstanding.<\/p>\n

The redemption proceeds will be paid to Series 1 and Series 2 shareholders who participated in the annual redemption on or before July 15, 2008. Series 1 shareholders will receive redemption proceeds of $25.00 per Series 1 Share submitted for redemption and Series 2 shareholders will receive redemption proceeds of $11.11 per Series 2 Share submitted for redemption.<\/p><\/blockquote>\n

This is very curious. The prospectus states<\/a>:<\/p>\n

The Series 1 Shares, Series 2 Shares and Equity Shares are offered separately, but will be issued only on the basis that there will be an equal number of Series 1 Shares, Series 2 Shares and Equity Shares issued.<\/p><\/blockquote>\n

… but note the word “issued”. The section titled “Redemption” is more forthcoming:<\/p>\n

In the event that any Series 1 Shares, Series 2 Shares or Equity Shares are tendered for redemption on a Redemption Date, the Company will purchase in the market for cancellation Series 1 Shares, Series 2 Shares and\/or Equity Shares, as applicable, (or if the Equity Shares are not traded on a public market, redeem Equity Shares at an amount per share equal to the greater of the Net Asset Value per Equity Share and $3.54) in order that, to the extent practicable, the ratio of outstanding securities of each class remains constant.<\/p><\/blockquote>\n

… but note the phrase “to the extent practicable”.<\/p>\n

Want to figure this one out? Why not try listening to the conference call previously mocked on PrefBlog<\/a>?<\/p>\n

Their fund page states<\/a>:<\/p>\n

On June 30, 2008, HI PREFS has its annual redemption feature. To listen to the replay of a conference call hosted by the Manager discussing the upcoming redemption please call 416-695-5800 \/ 1-800-408-3053, passcode 3262786.<\/p><\/blockquote>\n

Calling either number provided and tapping in the passcode results in a message that the passcode is invalid.<\/p>\n

I’ve asked it before<\/a> … I’ll ask it again: Is there anything about this issue that is not wierd?<\/p>\n

Thank heavens that HPF.PR.A is finally out of the HIMIPref™ index<\/a>. I never liked it … it was there only because volume was sufficient and DBRS insists it’s still investment grade<\/a> despite the dividend default. With roughly two-thirds of the issue now having retracted, I can only hope that it continues to be eliminated from consideration due to volume concerns.<\/p>\n

Update<\/b>: See also entries for HPF.PR.A<\/a> and HPF.PR.B<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Lawrence Asset Management has announced: that 680,998 HI PREFS Series 1 Shares (TSX: HPF.PR.A) and 207,662 HI PREFS Series 2 Shares (TSX: HPF.PR.B) were submitted for the annual redemption on June 30, 2008. Subsequent to …<\/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-2345","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2345","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=2345"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2345\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}