{"id":31501,"date":"2015-12-09T03:53:05","date_gmt":"2015-12-09T08:53:05","guid":{"rendered":"http:\/\/prefblog.com\/?p=31501"},"modified":"2015-12-09T03:53:05","modified_gmt":"2015-12-09T08:53:05","slug":"bip-pr-b-settles-better-than-expected-on-anemic-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=31501","title":{"rendered":"BIP.PR.B Settles Better than Expected On Anemic Volume"},"content":{"rendered":"<p>Brookfield Infrastructure <a href=\"http:\/\/www.brookfieldinfrastructure.com\/content\/2015_press_releases\/brookfield_infrastructure_completes_125_million_-43355.html\">has announced<\/a>:<\/p>\n<blockquote><p> the completion of its previously announced issue of Cumulative Class A Preferred Limited Partnership Units, Series 3 (\u201cSeries 3 Preferred Units\u201d) in the amount of $125,000,000. The offering was underwritten by a syndicate led by RBC Capital Markets, CIBC, Scotiabank, and TD Securities Inc.<\/p>\n<p> Brookfield Infrastructure issued 5,000,000 Series 3 Preferred Units at a price of $25.00 per unit, for total gross proceeds of $125,000,000. Holders of the Series 3 Preferred Units will be entitled to receive a cumulative quarterly fixed distribution yielding 5.50% annually for the initial period ending December 31, 2020. Thereafter, the distribution rate will be reset every five years at a rate equal to the greater of: (i) the 5-year Government of Canada bond yield plus 4.53%, and (ii) 5.50%. The Series 3 Preferred Units will commence trading on the Toronto Stock Exchange this morning under the ticker symbol BIP.PR.B.<\/p><\/blockquote>\n<p>BIP.PR.B is a FixedReset, 5.50%+453M550 (Interest + ROC), <a href=\"http:\/\/prefblog.com\/?p=31413\">announced December 1<\/a>. The issue traded 113,268 shares today (consolidated exchanges) in a range of 24.35-58 before closing at 24.35-40, 8&#215;40.<\/p>\n<p>Given that the TXPL index is down 6.37% to December 8 from its December 1 level, the issue actually performed a little better than expected; but it remains to be seen how much of that is due to underwriter support. I&#8217;d have more confidence in the level if the volume was higher.<\/p>\n<p>With some trepidation I am including this issue in the HIMIPref&trade; FixedReset subindex rather than the Interest-Bearing subindex, since I feel that the defining characteristic of the issue is its dividend formula rather than its dividend taxation status. I might change my mind later!<\/p>\n<p>Vital statistics are:<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td>BIP.PR.B<\/td>\n<td>FixedReset<\/td>\n<td>YTW SCENARIO<br \/>\nMaturity Type   : Limit Maturity<br \/>\nMaturity Date\t: 2045-12-08<br \/>\nMaturity Price  : 22.92<br \/>\nEvaluated at bid price : 24.35<br \/>\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Brookfield Infrastructure has announced: the completion of its previously announced issue of Cumulative Class A Preferred Limited Partnership Units, Series 3 (\u201cSeries 3 Preferred Units\u201d) in the amount of $125,000,000. The offering was underwritten by &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,26],"tags":[],"class_list":["post-31501","post","type-post","status-publish","format-standard","hentry","category-issue-comments","category-return-of-capital"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/31501","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=31501"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/31501\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}