{"id":50293,"date":"2019-05-01T21:52:00","date_gmt":"2019-05-02T01:52:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=50293"},"modified":"2025-10-15T21:53:42","modified_gmt":"2025-10-16T01:53:42","slug":"igm-pr-b-redeemed-at-par","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=50293","title":{"rendered":"IGM.PR.B Redeemed at Par"},"content":{"rendered":"<p>IGM Financial Inc. <a href=\"https:\/\/www.igmfinancial.com\/content\/dam\/igm\/en\/news\/2019\/IGM_2019DebentureCloseENGLISHFinal.pdf\">announced<\/a> (on March 20):<\/p>\n<blockquote><p>\u2013 IGM Financial Inc. (TSX:IGM) (\u201cIGM Financial\u201d) announced today that it has completed its previously announced offering of $250 million principal amount of 4.206% debentures due March 21, 2050.<\/p>\n<p>The debentures were offered through a group of agents led by BMO Capital Markets and RBC Capital Markets.<\/p>\n<p>The net proceeds of the offering will be used by IGM Financial to fund the intended redemption of all six million of its issued and outstanding 5.90% Non-Cumulative First Preferred Shares, Series B (the \u201cSeries B Preferred Shares\u201d) and for general corporate purposes. IGM Financial intends to issue a notice later today to redeem the Series B Preferred Shares on or about April 30, 2019. In accordance with the terms of the Series B Preferred Shares, the redemption price will be $25.00 for each Series B Preferred Share plus an amount equal to all declared and unpaid dividends, net of any tax required to be withheld by IGM Financial.<\/p>\n<\/blockquote>\n<p>IGM.PR.B <a href=\"http:\/\/prefblog.com\/?p=8981\">commenced trading 2009-12-8<\/a> after being <a href=\"http:\/\/www.prefblog.com\/?p=8868\">announced 2009-11-30<\/a>. The offering was not very successful and I reported an <a href=\"http:\/\/prefblog.com\/?p=9065\">inventory blow-out sale 2009-12-17<\/a>. <\/p>\n<p>As noted in some <a href=\"http:\/\/prefblog.com\/?p=35379#comment-194860\">comments on this redemption<\/a>, it is particularly noteworthy that the redemption is explicitly being financed with a 31-year bond issue yielding 4.206%, compared to the 5.90% dividend on the issue, which is equivalent to 7.67%, implying a Seniority Spread of almost 350bp; within a few basis points of the <a href=\"http:\/\/prefblog.com\/?p=38394\">350bp Seniority Spread reported March 20<\/a>, the announcement date. The redemption is another data point in my collection illustrating the current cheapness of the preferred share market relative to bonds, last discussed <a href=\"http:\/\/prefblog.com\/?p=38549\">April 10<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IGM Financial Inc. announced (on March 20): \u2013 IGM Financial Inc. (TSX:IGM) (\u201cIGM Financial\u201d) announced today that it has completed its previously announced offering of $250 million principal amount of 4.206% debentures due March 21, &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],"tags":[],"class_list":["post-50293","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50293","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=50293"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50293\/revisions"}],"predecessor-version":[{"id":50294,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50293\/revisions\/50294"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}