{"id":28495,"date":"2015-04-01T23:38:11","date_gmt":"2015-04-02T04:38:11","guid":{"rendered":"http:\/\/prefblog.com\/?p=28495"},"modified":"2015-04-01T23:38:11","modified_gmt":"2015-04-02T04:38:11","slug":"vsn-pr-e-better-than-expected-on-decent-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=28495","title":{"rendered":"VSN.PR.E Better Than Expected On Decent Volume"},"content":{"rendered":"

Veresen Inc. has announced<\/a>:<\/p>\n

that it has closed its previously announced bought deal offering of 8,000,000 Cumulative Redeemable Preferred Shares, Series E (the “Series E Preferred Shares”) at a price of $25.00 per share representing aggregate gross proceeds of $200,000,000 (the “Offering”). The Offering was made through a syndicate of underwriters co-led by Scotiabank, TD Securities Inc. and RBC Capital Markets.<\/p>\n

The net proceeds from the Offering will be used to repay amounts outstanding under the credit facility that Veresen entered into for purposes of financing its acquisition of a 50% convertible preferred interest in Ruby Pipeline Holding Company, L.L.C., the entity which indirectly owns the Ruby pipeline system.<\/p>\n

The Series E Preferred Shares will begin trading on the Toronto Stock Exchange today under the symbol “VSN.PR.E”.<\/p><\/blockquote>\n

VSN.PR.E is a FixedReset, 5.00%+427, announced 2015-03-23<\/a>. The issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.<\/p>\n

The issue has been rated Pfd-3 [Stable] by DBRS<\/a>.<\/p>\n

VSN.PR.E traded 616,055 shares today (consolidated exchanges) in a range of 24.75-92 before closing at 24.75-79. Vital statistics are:<\/p>\n

\n\n\n
VSN.PR.E<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-04-01
\nMaturity Price : 23.06
\nEvaluated at bid price : 24.75
\nBid-YTW : 5.02 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

While the issue closed its first day at a discount, its opening day turned out better than might be expected! The NAV of BMO S&P\/TSX Laddered Preferred Share Index ETF (ZPR)<\/a> was 12.86 at the close on March 23 (the announcement day) and was 12.50 today. After doing a rough adjustment for the $0.048 distribution that went ex on March 26<\/a>, we calculate a total return for the FixedReset ETF over the period of -2.4%, which suggests that a closing price of about 24.39 could have been expected.<\/p>\n","protected":false},"excerpt":{"rendered":"

Veresen Inc. has announced: that it has closed its previously announced bought deal offering of 8,000,000 Cumulative Redeemable Preferred Shares, Series E (the “Series E Preferred Shares”) at a price of $25.00 per share representing …<\/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-28495","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28495","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=28495"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28495\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}