{"id":47494,"date":"2024-10-24T19:31:53","date_gmt":"2024-10-25T00:31:53","guid":{"rendered":"https:\/\/prefblog.com\/?p=47494"},"modified":"2024-10-24T19:31:53","modified_gmt":"2024-10-25T00:31:53","slug":"trp-pr-e-trp-pr-l-7-conversion-to-floatingreset","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=47494","title":{"rendered":"TRP.PR.E \/ TRP.PR.L: 7% Conversion to FloatingReset"},"content":{"rendered":"

TC Energy Corporation has announced<\/a>:<\/p>\n

that 1,297,203 of its 18,000,000 fixed rate Cumulative Redeemable First Preferred Shares, Series 9 (Series 9 Shares) have been elected for conversion on a one-for-one basis into floating rate Cumulative Redeemable First Preferred Shares, Series 10 (Series 10 Shares) effective on Oct. 30, 2024. As a result, on Oct. 30, 2024, TC Energy will have 16,702,797 Series 9 Shares and 1,297,203 Series 10 Shares issued and outstanding. The Series 9 Shares and Series 10 Shares will be listed on the Toronto Stock Exchange under the symbols TRP.PR.E and TRP.PR.L, respectively.<\/p><\/blockquote>\n

TRP.PR.E was issued as a FixedReset, 4.25%+235, that commenced trading 2014-1-20<\/a> after being announced 2014-1-13<\/a>. Notice of extension was provided on 2019-9-18<\/a>. TRP.PR.E reset at 3.762%<\/a> effective 2019-10-30. I recommended against conversion<\/a> and there was no conversion<\/a>. The issue resets to 5.08%<\/a> effective 2024-10-30. TRP.PR.E is tracked by HIMIPref™ and assigned to the FixedReset-Discount subindex.<\/p>\n

So, if you think about it: TRP.PR.E reset to 5.08%<\/a> in accordance with a GOC-5 rate of 2.73%. So those who converted to the FloatingRate are betting that the 3-Month bill rate for the next five years will average better than 2.73%. Given that 3-Month bills are now at about 3.54% and that the swaps market is forecasting<\/a> an overnight rate of 2.58% at the end of 2025, it’s not the most horrible bet I’ve seen people make.<\/p>\n

Thanks to Assiduous Reader NK for bringing this to my attention!<\/p>\n","protected":false},"excerpt":{"rendered":"

TC Energy Corporation has announced: that 1,297,203 of its 18,000,000 fixed rate Cumulative Redeemable First Preferred Shares, Series 9 (Series 9 Shares) have been elected for conversion on a one-for-one basis into floating rate Cumulative …<\/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-47494","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47494","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=47494"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47494\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}