{"id":866,"date":"2007-05-23T13:03:46","date_gmt":"2007-05-23T17:03:46","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=866"},"modified":"2007-05-23T13:03:46","modified_gmt":"2007-05-23T17:03:46","slug":"new-issue-ypg-holdings-500-10-year-retractibles","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=866","title":{"rendered":"New Issue: YPG Holdings 5.00% 10-Year Retractibles"},"content":{"rendered":"

A new issue from this credit following up their 4.25% 5-Year issue<\/a> from earlier this year.<\/p>\n

They are issuing 8-million shares at 25.00, paying 5.00% p.a. quarterly. The first dividend will be for $0.37671, payable Sept. 26, based on an anticipated closing date of June 8.<\/p>\n

Another relatively complex redemption table:<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
YPG Series 2 Redemption Schedule<\/td>\n<\/tr>\n
From<\/td>\nTo<\/td>\nPrice<\/td>\n<\/tr>\n
2007-6-30<\/td>\n2008-6-29<\/td>\n$27.25*<\/td>\n<\/tr>\n
2008-6-30<\/td>\n2009-6-29<\/td>\n27.00*<\/td>\n<\/tr>\n
2009-6-30<\/td>\n2010-6-29<\/td>\n26.75*<\/td>\n<\/tr>\n
2010-6-30<\/td>\n2011-6-29<\/td>\n26.50*<\/td>\n<\/tr>\n
2011-6-30<\/td>\n2012-6-29<\/td>\n26.25*<\/td>\n<\/tr>\n
2012-6-30<\/td>\n2013-6-29<\/td>\n26.00<\/td>\n<\/tr>\n
2013-6-30<\/td>\n2014-6-29<\/td>\n25.75<\/td>\n<\/tr>\n
2014-6-30<\/td>\n2015-6-29<\/td>\n25.50<\/td>\n<\/tr>\n
2015-6-30<\/td>\n2016-6-29<\/td>\n25.25<\/td>\n<\/tr>\n
2016-6-30<\/td>\nInfinite Date<\/td>\n25.00<\/td>\n<\/tr>\n
Redemptions for which the price is marked with an asterisk may only be initiated in certain circumstances<\/em>
\nAll redemptions may be satisfied by exchange of Trust Units at a discount to market price, at the option of the Corporation.<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

The shares are retractible by the holder on and after June 30, 2017, at $25.00.<\/p>\n

This is a “Bought underwritten public issue”, with various escape clauses.<\/p>\n

The S&P<\/a> rating is P-3; DBRS<\/a> rates it Pfd-3(high).<\/p>\n

Update:<\/b> This issue has been added to the HIMIPref™ database with the preIssue<\/a> securityCode<\/a> P78000.<\/p>\n

Ah, the joys of being an “Operating Retractible”! The curvePrice<\/a> on this one is $26.76:<\/p>\n

\n

Price due to base-rate :\u00a0 24.65
\nPrice due to short-term :\u00a0 -0.80
\nPrice due to long-term :\u00a0\u00a0 2.04
\nPrice due to Interest Income :\u00a0\u00a0 0.00
\nPrice to to Cumulative Dividends :\u00a0\u00a0 0.00
\nPrice due to SplitShareCorp :\u00a0\u00a0 0.00
\nPrice due to Retractibility :\u00a0\u00a0 1.10
\nPrice due to Credit Spread (2) :\u00a0\u00a0 0.00
\nPrice due to Liquidity :\u00a0\u00a0 0.55
\nPrice due to Floating Rate :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (3) :\u00a0 -0.86
\nPrice due to error :\u00a0\u00a0 0.05
\nPrice due to Credit Spread (High) :\u00a0\u00a0 0.02
\nPrice due to Credit Spread (Low) :\u00a0\u00a0 0.00<\/p>\n<\/blockquote>\n

However, before anybody starts mortgaging the farm here, I’d better note that:<\/p>\n

    \n
  • Pfd-3 issues are very hard to value – they don’t always act as much like fixed income instruments as one might like.\n
  • Which is one reason why I don’t recommend such issues to be held other than as a small (less than 5% in a single name; less than 10% total) component of a well diversified portfolio.\n
  • The 5-year is trading about $1 below its curve Price<\/ul>\n

    \u00a0\n<\/p>\n

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

    A new issue from this credit following up their 4.25% 5-Year issue from earlier this year. They are issuing 8-million shares at 25.00, paying 5.00% p.a. quarterly. The first dividend will be for $0.37671, payable …<\/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-866","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/866","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=866"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/866\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}