{"id":543,"date":"2007-02-01T16:20:32","date_gmt":"2007-02-01T20:20:32","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=543"},"modified":"2007-02-01T16:20:32","modified_gmt":"2007-02-01T20:20:32","slug":"great-west-spends-cad-46-billion-implications-for-prefs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=543","title":{"rendered":"Great-West Spends CAD 4.6-Billion! Implications for Prefs?"},"content":{"rendered":"

It has been announced that Great-West will aquire Putnam Investments for CAD 4.6-Billion<\/a>.<\/p>\n

In response, DBRS<\/a> has placed the entire corporate structure on credit review with developing implications: GWO (which includes CL and GWL<\/a>), PWF and POW.<\/p>\n

Standard & Poors<\/a> has taken a much more nonchalant approach, affirming the current ratings.<\/p>\n

According to GWO<\/a>:<\/p>\n

Funding for the transaction will come from internal resources as well as from proceeds of an issue of Lifeco common shares of no more than CDN $1.2 billion, the issuance of debentures and hybrids, a bank credit facility, and an acquisition tax benefit securitization.<\/p><\/blockquote>\n

This transaction might possibly explain the mystery of CL.PR.B, which has still not been called<\/a>. If they have to push through a lot of net issuance, they’re probably not too enthusiastic about calling the old stuff – CL.PR.B has 6-million shares outstanding, so redeeming it at $26.00 would add $156-million to the amount of gross issuance required.<\/p>\n

Similarly, it is possible that the resources devoted to the GWO.PR.E \/ GWO.PR.X Issuer Bid<\/a> will be reduced.<\/p>\n

For the other companies in the group, the transaction may affect, for instance,\u00a0the chance of PWF.PR.J<\/a> being redeemed early.<\/p>\n

One may take a lot of views and play with a lot of scenarios. Me, I’m just going to assume, as always, that the worst scenario – in life, love and investing – is most likely.<\/p>\n","protected":false},"excerpt":{"rendered":"

It has been announced that Great-West will aquire Putnam Investments for CAD 4.6-Billion. In response, DBRS has placed the entire corporate structure on credit review with developing implications: GWO (which includes CL and GWL), PWF …<\/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-543","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/543","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=543"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/543\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}