{"id":32285,"date":"2006-09-25T22:26:34","date_gmt":"2006-09-26T02:26:34","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=125"},"modified":"2006-09-25T22:26:34","modified_gmt":"2006-09-26T02:26:34","slug":"falprf-falprg-to-be-redeemed","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=32285","title":{"rendered":"FAL.PR.F \/ FAL.PR.G to be redeemed"},"content":{"rendered":"<p>Xstrata has <a href=\"http:\/\/www.xstrata.com\/press_release.php?id=ac&#038;nb=200609151.en.html\">announced<\/a> that the two captioned issues will be redeemed on November 1, 2006.<\/p>\n<blockquote>\n<p>each series F share will be redeemed for C$25.50 in cash, each series G share will be redeemed for C$25.00 in cash\u00a0&#8230; plus accrued and unpaid dividends in respect of each share up to, but excluding, 1 November 2006.<\/p>\n<\/blockquote>\n<p>FAL.PR.F became a ratchet rate preferred on 2005-07-06 and its most recent dividends have been $0.115 monthly, or $1.38 annually, or 5.52% on the issue price, or 5.41% against the redemption price. It ended today quoted at 25.33-55, 83&#215;100 (big size for this issue!), but with no trading.<\/p>\n<p>FAL.PR.G was its opposite number, and has been paying $0.38125 quarterly, or $1.525 annually, or 6.1% on its issue price (= redemption price).<\/p>\n<p>These shares used to be Noranda and the <a href=\"http:\/\/www.falconbridge.com\/documents\/merger_information\/Fal_Special_Mtg_Circ.pdf\">provisions stated on Page C-6 of the 2005-06-02 Information Circular<\/a> (sorry, I don&#8217;t have the original prospectus handy!) states that the fixed rate option could be as low as 80% of the 5-year Canada Yield. I can only presume that XStrata decided it could not bank on the ratchet-rate prefs yielding a low enough percentage of prime to make a lousy rate on the fixed-rate side worthwhile.<\/p>\n<p>So anyway, there&#8217;s\u00a0a ratchet-rate pref gone!\n<\/p>\n<p><!--16d10ac51f39437e9a5537c31120d4fe--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Xstrata has announced that the two captioned issues will be redeemed on November 1, 2006. each series F share will be redeemed for C$25.50 in cash, each series G share will be redeemed for C$25.00 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,13],"tags":[],"class_list":["post-32285","post","type-post","status-publish","format-standard","hentry","category-data-fixes","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32285","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=32285"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/32285\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}