{"id":7516,"date":"2009-08-10T20:18:54","date_gmt":"2009-08-11T00:18:54","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=7516"},"modified":"2009-08-10T20:18:54","modified_gmt":"2009-08-11T00:18:54","slug":"august-10-2009","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=7516","title":{"rendered":"August 10, 2009"},"content":{"rendered":"

CIT has amended its exchange offer<\/a> for its debentures due August 17:<\/p>\n

As a result of the amendment, holders of all Notes tendered prior to the expiration date at midnight, New York City time, at the end of Friday, August 14, 2009, will receive the amended purchase price of $875 in cash per $1,000 principal amount of Notes, as total consideration in the Offer. Previously, the purchase price, which included an early delivery payment, was $825 per $1,000 principal amount of Notes.<\/p>\n

CIT announced that the amendment to the Offer also reduces the minimum tender condition to 58% of the Notes, an amount approximately equal to the number of Notes which pursuant to the Credit Facility the lenders are committed to tender and not withdraw. As of 5:00 p.m., New York City time, on Friday, July 31, 2009, CIT had received tenders for 64.97% of the Notes.<\/p>\n

The withdrawal deadline for the Offer has been extended until midnight, New York City time, at the end of Wednesday, August 5, 2009. All other terms of the Offer remain unchanged.<\/p><\/blockquote>\n

They have also suspended preferred dividends<\/a>:<\/p>\n

the Company\u2019s Board of Directors has decided to suspend dividend payments on its four series of Preferred Stock in order to improve liquidity and preserve capital while restructuring efforts are ongoing. Payments on the Company\u2019s Equity Units (NYSE: CIT PrZ) are not affected by this decision.<\/p><\/blockquote>\n

China has claimed that industrial espionage by Rio Tinto<\/a> has cost the country’s steel mills over $100-billion, in connection with recent arrests. I have no idea whether the charges are well-founded or not; but if true, a vigorous response should provide a hint to Canada<\/a> and Germany<\/a>, inter alia, that confident countries don’t just whine about it.<\/p>\n

There has been a fascinating hiccup<\/a> in BAC \/ SEC lawsuit over the MER bonuses:<\/p>\n

U.S. District Judge Jed Rakoff ended the hearing saying that he needs more information on the Aug. 3 accord between the bank and the U.S. Securities and Exchange Commission, which filed the suit. The settlement won\u2019t be final unless Rakoff approves it.<\/p>\n

If the SEC is correct that Bank of America lied about whether to pay the bonuses, then the proposed settlement isn\u2019t \u201cremotely reasonable,\u201d Rakoff said.<\/p><\/blockquote>\n

Not a lot of price action today, but volume continued strong.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n2.2069 %<\/td>\n1,287.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n6.59 %<\/td>\n4.83 %<\/td>\n46,624<\/td>\n17.50<\/td>\n1<\/td>\n1.4136 %<\/td>\n2,330.1<\/td>\n<\/tr>\n
Floater<\/td>\n3.54 %<\/td>\n3.54 %<\/td>\n123,936<\/td>\n18.39<\/td>\n2<\/td>\n2.2069 %<\/td>\n1,607.9<\/td>\n<\/tr>\n
OpRet<\/td>\n4.89 %<\/td>\n-6.52 %<\/td>\n138,873<\/td>\n0.09<\/td>\n15<\/td>\n-0.0257 %<\/td>\n2,259.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.72 %<\/td>\n6.47 %<\/td>\n94,639<\/td>\n4.10<\/td>\n3<\/td>\n0.6088 %<\/td>\n2,030.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0257 %<\/td>\n2,065.6<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.76 %<\/td>\n5.55 %<\/td>\n85,410<\/td>\n14.20<\/td>\n4<\/td>\n0.1399 %<\/td>\n1,859.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.86 %<\/td>\n5.89 %<\/td>\n173,621<\/td>\n14.04<\/td>\n67<\/td>\n0.1000 %<\/td>\n1,751.6<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.50 %<\/td>\n4.01 %<\/td>\n518,941<\/td>\n4.16<\/td>\n40<\/td>\n0.0018 %<\/td>\n2,100.5<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
CL.PR.B<\/td>\nPerpetual-Discount<\/td>\n-1.63 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2011-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.28
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n-1.18 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 18.50
\nEvaluated at bid price : 18.50
\nBid-YTW : 6.32 %<\/td>\n<\/tr>\n
POW.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 23.60
\nEvaluated at bid price : 23.93
\nBid-YTW : 6.12 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\n1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 22.23
\nEvaluated at bid price : 22.75
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n
BAM.PR.G<\/td>\nFixedFloater<\/td>\n1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 16.50
\nBid-YTW : 4.83 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n1.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.81
\nBid-YTW : 8.36 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.80 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 21.95
\nEvaluated at bid price : 22.07
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n3.70 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 11.20
\nEvaluated at bid price : 11.20
\nBid-YTW : 3.54 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nPerpetual-Discount<\/td>\n163,025<\/td>\nRBC bought 10,000 from anonymous at 24.60 and another 10,000 from HSBC at the same price. Nesbitt crossed 100,000 at 24.65.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 24.43
\nEvaluated at bid price : 24.65
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
TD.PR.N<\/td>\nOpRet<\/td>\n101,890<\/td>\nNesbitt crossed 100,000 at 26.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2009-09-09
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.25
\nBid-YTW : -5.69 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nPerpetual-Discount<\/td>\n66,350<\/td>\nRBC crossed 48,600 at 20.30, then another 10,000 at the same price.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 20.26
\nEvaluated at bid price : 20.26
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n65,762<\/td>\nRBC crossed 49,200 at 27.75.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.74
\nBid-YTW : 4.39 %<\/td>\n<\/tr>\n
TD.PR.Q<\/td>\nPerpetual-Discount<\/td>\n49,400<\/td>\nRBC sold 10,000 to anonymous at 24.80.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2039-08-10
\nMaturity Price : 24.38
\nEvaluated at bid price : 24.60
\nBid-YTW : 5.73 %<\/td>\n<\/tr>\n
RY.PR.P<\/td>\nFixedReset<\/td>\n38,010<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-26
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.41
\nBid-YTW : 3.95 %<\/td>\n<\/tr>\n
There were 42 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

CIT has amended its exchange offer for its debentures due August 17: As a result of the amendment, holders of all Notes tendered prior to the expiration date at midnight, New York City time, at …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-7516","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7516","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=7516"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7516\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}