{"id":592,"date":"2007-02-19T20:42:00","date_gmt":"2007-02-20T00:42:00","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=592"},"modified":"2007-02-19T20:42:00","modified_gmt":"2007-02-20T00:42:00","slug":"new-issue-ypg-holdings-425-6-year-retractible","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=592","title":{"rendered":"New Issue : YPG Holdings 4.25% 6-Year Retractible"},"content":{"rendered":"

\u00a0<\/p>\n

Yellow Pages Income Fund (the “Fund”) (TSX:YLO.UN) announced today that its subsidiary, YPG Holdings Inc. (the “Issuer”), will be issuing 12,000,000 cumulative redeemable preferred shares, series 1 (the “Series 1 Shares”) for aggregate gross proceeds of $300 million on a bought deal basis to a syndicate of underwriters led by Scotia Capital Inc., CIBC World Markets Inc., RBC Capital Markets and BMO Capital Markets, acting as joint book-runners.<\/p><\/blockquote>\n

\u00a0<\/p>\n

The issue price is $25.00 and the dividend is 4.25% p.a., payable quarterly. Issue size is 12-million shares ($300-million) and the underwriters have the option until March 31 to purchase an additionaly 1.8-million shares ($45-million).<\/p>\n

The initial dividend will be $0.32894, payable June 27 based on a closing date of March 6, 2007.<\/p>\n

There are call privileges on the issue, which are exercisable only in circumstances in which the Series 1 shares are entitled to vote separately as a class or series by law. This “special call privilege” has the following schedule:<\/p>\n

\n\n\n\n\n\n\n\n\n
Special Call, if redeemed during the 12 months<\/td>\n<\/tr>\n
Commencing March 31,<\/td>\nRedemption Price<\/td>\n<\/tr>\n
2007<\/td>\n$26.25<\/td>\n<\/tr>\n
2008<\/td>\n26.00<\/td>\n<\/tr>\n
2009<\/td>\n25.75<\/td>\n<\/tr>\n
2010<\/td>\n25.50<\/td>\n<\/tr>\n
2011<\/td>\n25.25<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

There is a normal call, exercisable on and after March 31, 2012 at the corporation’s whim, to call at $25.00 cash.<\/p>\n

The corporation can force conversion in to Trust Units of Yellow Pages Income Fund at the greater of (i) $2, or (ii) 95% of the Trust Units’ trading price at any time at which it could redeem the shares (including the special call).<\/p>\n

The shares are retractible to cash on and after Dec 31, 2012 at $25.00.<\/p>\n

This issue has ratings (provisional, presumably) of :<\/p>\n

\n\n\n\n
DBRS<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
S&P<\/td>\nP-3<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

More later.<\/p>\n

Update & Bump<\/strong>: The issue has been entered into the HIMIPref\u2122 database on a preIssue<\/a> basis, with the securityCode<\/a> P50011.<\/p>\n

There aren’t too many comparables for this issue, but I’ll do what I can!<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Curve Price & Comparables for YPG.PR.?<\/td>\n<\/tr>\n
Item<\/td>\nYPG.PR.?<\/td>\nBNA.PR.C<\/td>\nBAM.PR.J<\/td>\nCFS.PR.A<\/td>\n<\/tr>\n
Price due to base-rate<\/td>\n24.15<\/td>\n24.00\u00a0<\/td>\n26.57\u00a0<\/td>\n9.89\u00a0<\/td>\n<\/tr>\n
Price due to short-term<\/td>\n-0.51<\/td>\n\u00a0-0.61<\/td>\n\u00a0-0.65<\/td>\n\u00a0-0.19<\/td>\n<\/tr>\n
Price due to long-term<\/td>\n1.40<\/td>\n\u00a01.67<\/td>\n\u00a01.78<\/td>\n\u00a00.52<\/td>\n<\/tr>\n
Price to to Cumulative Dividends<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to SplitShareCorp<\/td>\n0.00<\/td>\n\u00a0-1.19<\/td>\n\u00a00.00<\/td>\n\u00a0-0.22<\/td>\n<\/tr>\n
Price due to Retractibility<\/td>\n0.84<\/td>\n\u00a01.52<\/td>\n\u00a01.52<\/td>\n\u00a00.29<\/td>\n<\/tr>\n
Price due to Liquidity<\/td>\n0.46<\/td>\n\u00a00.85<\/td>\n\u00a0-0.09<\/td>\n\u00a00.16<\/td>\n<\/tr>\n
Price due to Credit Spread (2)<\/td>\n0.00<\/td>\n\u00a0-0.39<\/td>\n\u00a0-0.39<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Credit Spread (3)<\/td>\n-0.60<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Credit Spread (High)<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Credit Spread (Low)<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a0-0.29<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to error<\/td>\n0.02<\/td>\n\u00a00.09<\/td>\n\u00a00.05<\/td>\n\u00a00.01<\/td>\n<\/tr>\n
Curve Price (Taxable Curve)<\/td>\n\u00a0$25.76<\/td>\n\u00a0$25.94<\/td>\n\u00a0$28.50<\/td>\n\u00a0$10.46<\/td>\n<\/tr>\n
DBRS Credit Rating<\/td>\nPfd-3(high)<\/td>\nPfd-2<\/td>\nPfd-2(low)<\/td>\nPfd-1<\/td>\n<\/tr>\n
Quote, 2\/19<\/td>\n\u00a0$25.00 (Issue Price)<\/td>\n\u00a024.91-95<\/td>\n\u00a027.86-97<\/td>\n\u00a0$10.20-23<\/td>\n<\/tr>\n
YTW (After Tax)<\/td>\n\u00a03.36%<\/td>\n\u00a03.54%<\/td>\n\u00a03.32%<\/td>\n\u00a03.07%<\/td>\n<\/tr>\n
Modified Duration (YTW – after tax)<\/td>\n\u00a05.27<\/td>\n\u00a09.61<\/td>\n\u00a06.16<\/td>\n\u00a05.40<\/td>\n<\/tr>\n
Pseudo-Convexity (YTW – after tax)<\/td>\n\u00a00.38<\/td>\n\u00a00.42<\/td>\n\u00a0-12.44<\/td>\n\u00a00.47<\/td>\n<\/tr>\n
YTW (Pre-tax)<\/td>\n\u00a04.24%<\/td>\n\u00a04.46%<\/td>\n4.17%\u00a0<\/td>\n3.86%\u00a0<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Update 2007-02-20<\/b> : I note that the YPG bonds, 5.25% of Feb. 2016 are indicated at Canada 4.5\/15 + 143bp, call it 5.51% at last night’s close. So, at a pre-tax YTW of 4.24%, interest equivalent (for rich Ontario residents<\/a>)\u00a0 to 5.94%, the new prefs are trading at a reasonable spread to bonds.<\/p>\n

Mind you, these are only Pfd-3(high). As credit quality decreases, so does the quality of HIMIPref™’s yield curve analysis. I do not recommend that these prefs be considered for more than 5% of a diversified preferred share portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Yellow Pages Income Fund (the “Fund”) (TSX:YLO.UN) announced today that its subsidiary, YPG Holdings Inc. (the “Issuer”), will be issuing 12,000,000 cumulative redeemable preferred shares, series 1 (the “Series 1 Shares”) for aggregate gross …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-592","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/592","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=592"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/592\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}