{"id":7576,"date":"2009-08-17T19:26:37","date_gmt":"2009-08-17T23:26:37","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=7576"},"modified":"2009-08-17T19:26:37","modified_gmt":"2009-08-17T23:26:37","slug":"new-issue-etc-fixedreset-725453","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=7576","title":{"rendered":"New Issue: ETC FixedReset 7.25%+453"},"content":{"rendered":"

Equitable Trust has announced<\/a>:<\/p>\n

it has entered into an agreement with a group of underwriters led by National Bank Financial Inc. and GMP Securities L.P. (the \u201cUnderwriters\u201d) to issue 1,440,000 Non\u2010Cumulative 5\u2010Year Rate Reset Preferred Shares, Series 1 (the \u201cSeries 1 Preferred Shares\u201d) at a price of $25.00 per share, on a bought deal basis for gross proceeds of $36 million (the \u201cProspectus Offering\u201d). The Company also announced that it intends to issue on a private placement basis an additional 360,000 Series 1 Preferred Shares at a price of $25.00 per share for gross proceeds of $9 million (the \u201cPrivate Placement Offering\u201d). The sole subscriber for the Private Placement Offering will be Canadian Western Bank.
…<\/b>
The Series 1 Preferred Shares will yield 7.25% annually, payable quarterly, as and when declared by the Board of Directors of the Company for an initial period ending September 30, 2014. Thereafter, the dividend rate will reset every five years at a level of 4.53% over the then five\u2010year Government of Canada bond yield. Holders of Series 1 Preferred Shares will, subject to certain conditions, have the option to convert their shares to Non\u2010Cumulative Floating Rate Preferred Shares, Series 2 (the \u201cSeries 2 Preferred Shares\u201d) on September 30, 2014 and on September 30 every five years thereafter. Holders of the Series 2 Preferred Shares will be entitled to a floating quarterly dividend rate equal to the 90\u2010day Canadian Treasury Bill Rate plus 4.53%, as and when declared by the Board of Directors of the Company.<\/p><\/blockquote>\n

There is no word on whether the issue will be rated or not. It appears from the balance sheet<\/a> that the company’s funding is over 90% GIC based, with a few bank term loans and a sub-debt issue (held by the owners?) thrown in. As they say<\/a>:<\/p>\n

The Guaranteed Investment Certificate (\u201cGIC\u201d)market continues to provide deep and liquid funding for Equitable Trust\u2019s business. As such, the volatility in the credit markets has had less impact on Equitable than on many other mortgage lenders. As an approved seller under the CMB Program, Equitable Trust is also able to transact securitization activities with government-sponsored programs that continue to be available.<\/p><\/blockquote>\n

Without a rating, the issue will not be tracked by HIMIPref™, as was the case with RF.PR.A<\/a> and CWB.PR.A<\/a>, I’m not convinced that without a rating there will be much public pressure on the company to clean up its act, should its act ever need cleaning up.<\/p>\n

Update, 2013-3-3<\/b>: Trades as ETC.PR.A<\/p>\n","protected":false},"excerpt":{"rendered":"

Equitable Trust has announced: it has entered into an agreement with a group of underwriters led by National Bank Financial Inc. and GMP Securities L.P. (the \u201cUnderwriters\u201d) to issue 1,440,000 Non\u2010Cumulative 5\u2010Year Rate Reset Preferred …<\/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-7576","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7576","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=7576"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7576\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}