{"id":40053,"date":"2020-01-03T01:23:46","date_gmt":"2020-01-03T06:23:46","guid":{"rendered":"http:\/\/prefblog.com\/?p=40053"},"modified":"2020-01-03T01:23:46","modified_gmt":"2020-01-03T06:23:46","slug":"azp-pr-b-azp-pr-c-net-conversion-of-12-to-fixedresets","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40053","title":{"rendered":"AZP.PR.B \/ AZP.PR.C : Net Conversion of 12% to FixedResets"},"content":{"rendered":"

AZP.PR.B used to be CZP.PR.B<\/a>, which used to be EPP.PR.B<\/a>, and throughout these changes was a FixedReset, 7.00%+418, which commenced trading 2009-11-2<\/a> after being announced 2009-10-13<\/a>. You can’t tell your players without a programme! Notice of extension was provided<\/a> in November, 2014, and it reset to 5.57% effective 2014-12-31<\/a>. I recommended in favour of conversion<\/a> and the conversion rate was 42%<\/a>. The company announced the extension to 2024<\/a> on 2019-11-14. An erroneous announcement of a reset to 5.67% was announced 2019-12-2<\/a> but it was later announced that AZP.PR.B will reset at 5.739%<\/a> effective January 1, 2020.<\/p>\n

AZP.PR.C resulted from the partial conversion of AZP.PR.B<\/a> and commenced trading 2014-12-31<\/a>.<\/p>\n

Atlantic Power can\u2019t be bothered to issue a press release or otherwise indicate on their website just what the results of the conversion option were (just like 2014<\/a>), but there is information available on TMXMoney, maybe.<\/p>\n

According to the TMX Money page for AZP.PR.C<\/a> (the FloatingReset), there are 1,077,391 shares outstanding (down from 1,661,906). There are reporting 2,504,131 AZP.PR.B outstanding<\/a> (up from 2,338,094).<\/p>\n

In its 2018 Annual Financial Statements (inconveniently available via SEDAR<\/a> with a search for “Atlantic ower Corporation\tFeb 28 2019\t18:10:49 ET Audited annual financial statements – English PDF\t2381 K”, since neither the company nor the regulators want you reading this stuff – who do you think you are?) the company states:<\/p>\n

We also purchased and cancelled 5,000 and 164,790 of the Series 2 and 3 Shares at Cdn$17.99 and Cdn$17.89 per share for Cdn$0.1 million and Cdn$2.9 million, respectively for a total cost of $8.0 million. A $7.9 million gain on the redemption was recorded as a component of income attributable to preferred shares of a subsidiary company in the year ended December 31, 2018. From December 31, 2018 through February 27, 2019, we purchased the maximum limit of 427,500 shares of Series 1 Preferred Shares, 27,777 of Series 2 Preferred Shares and the maximum limit of 148,311 Series 3 Preferred Shares at a total cost of Cdn$9.2 million<\/p><\/blockquote>\n

… so obviously the company knows a bargain when it sees one! If only they were more prolific with their press releases!<\/p>\n

So the 2014-12-31 proportion of AZP.PR.B was 58% and the 2019-12-31 proportion is 70%. So call it a net conversion to FixedResets of 12%.<\/p>\n

So that\u2019s a conversion rate of about 42%. In my post just before the decision deadline, I recommended conversion.<\/p>\n","protected":false},"excerpt":{"rendered":"

AZP.PR.B used to be CZP.PR.B, which used to be EPP.PR.B, and throughout these changes was a FixedReset, 7.00%+418, which commenced trading 2009-11-2 after being announced 2009-10-13. You can’t tell your players without a programme! Notice …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,13],"tags":[],"class_list":["post-40053","post","type-post","status-publish","format-standard","hentry","category-better-communication-please","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40053","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=40053"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40053\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}