{"id":45996,"date":"2023-11-07T11:21:00","date_gmt":"2023-11-07T16:21:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=45996"},"modified":"2023-11-07T11:21:00","modified_gmt":"2023-11-07T16:21:00","slug":"ala-pr-e-redemption-considered","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=45996","title":{"rendered":"ALA.PR.E Redemption Considered"},"content":{"rendered":"

AltaGas Ltd. has announced<\/a>:<\/p>\n

that it is considering an offering of hybrid subordinated debt securities under its short form base shelf prospectus dated March 31, 2023.<\/p>\n

If a successful offering is priced and completed, the Company intends to use the net proceeds of the offering to redeem or repurchase its outstanding cumulative redeemable five-year rate reset preferred shares, series E (TSX: ALA.PR.E). There is no certainty that AltaGas will ultimately complete the offering being considered or as to the timing or terms on which such an offering might be completed.<\/p><\/blockquote>\n

ALA.PR.E was issued as a FixedReset, 5.00%+317, that commenced trading 2013-12-13<\/a> after being announced 2013-12-4<\/a>. The 2018-11-28 notice of extension<\/a> was reported on PrefBlog. The issue reset at 5.393% effective December 31, 2018<\/a>. I recommended against conversion<\/a> and there was no conversion<\/a>. The issue is tracked by HIMIPref\u2122 but is relegated to the Scraps – FixedReset Discount subindex due to credit concerns.<\/p>\n

The market seems to be ascribing a pretty fair chance of success with their refunding (which is reasonable, since the company will be very hesitant to announce a longshot): the issue was quoted at 22.20-22 at the ‘close’ (actually, 4:30pm<\/a>) yesterday, opened at 22.20 today (some poor sucker with a GTC order? Or somebody bailing without seeing the news?), traded just below 24.50 at about 10:30am, and is now (11:20am) at 24.94. So some people are making a few bucks!<\/p>\n

This is another example of just how cheap the preferred share market is nowadays against its comparables.<\/p>\n

Thanks to the Assiduous Reader who brought this to my attention!<\/p>\n","protected":false},"excerpt":{"rendered":"

AltaGas Ltd. has announced: that it is considering an offering of hybrid subordinated debt securities under its short form base shelf prospectus dated March 31, 2023. If a successful offering is priced and completed, the …<\/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-45996","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/45996","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=45996"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/45996\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}