{"id":609,"date":"2007-02-22T20:30:46","date_gmt":"2007-02-23T00:30:46","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=609"},"modified":"2007-02-22T20:30:46","modified_gmt":"2007-02-23T00:30:46","slug":"new-issue-dundee-wealth-management-pfd-3-475","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=609","title":{"rendered":"New Issue : Dundee Wealth Management, Pfd-3, 4.75%"},"content":{"rendered":"

Dundee Wealth Management has announced (via CCN Matthews<\/a>) that:<\/p>\n

\n

it has entered into a “bought deal” agreement to sell to a syndicate of underwriters led by Scotia Capital Inc. and Dundee Securities Corporation, 6,000,000 4.75% Cumulative Redeemable First Preference Shares, Series 1 (the “Series 1 Shares”) at a price of $25.00 per Series 1 Share for gross proceeds to Dundee Wealth of $150 million. The underwriters also have an over-allotment option, exercisable at any time prior to 30 days after the closing date, to acquire an additional 900,000 Series 1 Shares at the issue price of $25.00 per Series 1 Share. The offering is expected to close on or about March 13, 2007.<\/p>\n<\/blockquote>\n

DBRS<\/a> has rated this issue Pfd-3.<\/p>\n

I am advised that this issue is a 10-year retractible – but I have not yet been advised in writing! This issue is of sufficient size to be added to the HIMIPref\u2122 database. I will provide more details and analysis when it becomes available.<\/p>\n

Update & Bump<\/strong> : I have received a term sheet.<\/p>\n

Annual dividends are $1.1875 per share per annum. The first dividend is intended to be payable June 30, 2007 and be $0.35625, based on the anticipated closing date of March 13, 2007.<\/p>\n

The redemption schedule is:<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n<\/tr>\n
If called during the 12 months commencing March 13,<\/td>\nRedemption Price<\/td>\n<\/tr>\n
2007<\/td>\n27.25<\/td>\n<\/tr>\n
2008<\/td>\n27.00<\/td>\n<\/tr>\n
2009<\/td>\n26.75<\/td>\n<\/tr>\n
2010<\/td>\n26.50<\/td>\n<\/tr>\n
2011<\/td>\n26.25<\/td>\n<\/tr>\n
2012<\/td>\n26.00<\/td>\n<\/tr>\n
2013<\/td>\n25.75<\/td>\n<\/tr>\n
2014<\/td>\n25.50<\/td>\n<\/tr>\n
2015<\/td>\n25.25<\/td>\n<\/tr>\n
Or any time after March 13, 2016<\/td>\n$25.00<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Any redemption before March 13, 2012 is limited to circumstances where the Series 1 Shares are entitled to vote separately as a class or series by law.<\/p>\n

The shares are retractible for cash at the option of the holder on and after March 13, 2017 at $25.00.<\/p>\n

Another Update & Bump!<\/strong><\/p>\n

I have prepared the following table with some comparatives:<\/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\n\n
Dundee Wealth New Issue & Comparitives<\/td>\n<\/tr>\n
Data<\/td>\nDW.PR.?<\/td>\nBAM.PR.J<\/td>\nDC.PR.A<\/td>\n<\/tr>\n
Price due to base-rate<\/td>\n24.63<\/td>\n\u00a026.51<\/td>\n\u00a025.17<\/td>\n<\/tr>\n
Price due to short-term<\/td>\n-0.55<\/td>\n\u00a0-0.57<\/td>\n\u00a0-0.53<\/td>\n<\/tr>\n
Price due to long-term<\/td>\n1.71<\/td>\n\u00a01.77<\/td>\n\u00a01.64<\/td>\n<\/tr>\n
Price to to Cumulative Dividends<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to SplitShareCorp<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Retractibility<\/td>\n1.26<\/td>\n\u00a01.40<\/td>\n\u00a01.16<\/td>\n<\/tr>\n
Price due to Liquidity<\/td>\n0.77<\/td>\n\u00a0-0.11<\/td>\n\u00a00.03<\/td>\n<\/tr>\n
Price due to Floating Rate<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Credit Spread (2)<\/td>\n0.00<\/td>\n\u00a0-0.33<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Credit Spread (3)<\/td>\n-0.94<\/td>\n\u00a00.00<\/td>\n\u00a0-0.86<\/td>\n<\/tr>\n
Price due to Credit Spread (High)<\/td>\n0.00<\/td>\n\u00a00.00<\/td>\n\u00a00.00<\/td>\n<\/tr>\n
Price due to Credit Spread (Low)<\/td>\n0.00<\/td>\n\u00a0-0.29<\/td>\n\u00a0-0.24<\/td>\n<\/tr>\n
Price due to error<\/td>\n0.02<\/td>\n\u00a00.04<\/td>\n\u00a00.07<\/td>\n<\/tr>\n
Curve Price (Taxable Curve)<\/td>\n\u00a026.90<\/td>\n\u00a028.42<\/td>\n\u00a026.44<\/td>\n<\/tr>\n
Quote 2\/22<\/td>\n\u00a025.00
\nIssue<\/td>\n		\u00a027.82-86<\/td>\n\u00a025.55-70<\/td>\n<\/tr>\n
YTW (after tax)<\/td>\n\u00a03.77%<\/td>\n\u00a03.34%<\/td>\n\u00a03.84%<\/td>\n<\/tr>\n
YTW Date<\/td>\n\u00a02017-3-12<\/td>\n\u00a02014-4-30<\/td>\n\u00a02016-6-29<\/td>\n<\/tr>\n
Credit Rating (DBRS)<\/td>\n\u00a0Pfd-3<\/td>\n\u00a0Pfd-2(low)<\/td>\n\u00a0Pfd-3(low)<\/td>\n<\/tr>\n
YTW (Pre-Tax)<\/td>\n4.75%<\/td>\n4.20%<\/td>\n4.83%<\/td>\n<\/tr>\n
YTW Modified Duration (Pre-Tax)<\/td>\n7.98<\/td>\n5.98<\/td>\n7.40<\/td>\n<\/tr>\n
YTW Pseudo-Convexity (Pre-Tax)<\/td>\n0.2<\/td>\n-11.9<\/td>\n0.2<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Note that the BAM.PR.J has a soft-maturity 2018-3-30 at $25.00 to yield 3.35% – it’s right on the bubble, which is why the pseudoConvexityWorst<\/a> is both large and negative.<\/p>\n

This new issue looks attractive when valued in strict accordance to the yield curve. But as I warned in my post about the YPG New Issue<\/a>:<\/p>\n

\n

As credit quality decreases, so does the quality of HIMIPref\u2122\u2019s yield curve analysis. I do not recommend that these prefs be considered for more than 5% of a diversified preferred share portfolio.<\/p>\n<\/blockquote>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Dundee Wealth Management has announced (via CCN Matthews) that: it has entered into a “bought deal” agreement to sell to a syndicate of underwriters led by Scotia Capital Inc. and Dundee Securities Corporation, 6,000,000 4.75% …<\/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-609","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/609","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=609"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/609\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}