{"id":868,"date":"2007-05-23T13:30:07","date_gmt":"2007-05-23T17:30:07","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=868"},"modified":"2007-05-23T13:30:07","modified_gmt":"2007-05-23T17:30:07","slug":"new-issue-co-operators-5-perpetual","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=868","title":{"rendered":"New Issue : Co-operators 5% Perpetual"},"content":{"rendered":"

In order to pay for the redemption of CCS.PR.A<\/a>, Co-operators General Insurance<\/a> is issuing a 5% Perp.<\/p>\n

They announced via CCN Matthews<\/a>:<\/p>\n

\n

today announced that it has entered into an agreement with Scotia Capital Inc. on behalf of a syndicate of underwriters pursuant to which the underwriters have agreed to buy and offer for sale by way of a public offering of $100 million of Non-Cumulative Redeemable Class E Preference Shares, Series C (“Series C Preference Shares”) on a bought deal basis.<\/p>\n

Co-operators General will issue 4 million Series C Preference Shares priced at $25.00 per share and holders will be entitled to receive fixed non-cumulative preferential quarterly cash dividends in the amount of $0.3125 per Series C Preference Share, to yield 5.00 per cent per annum. The offering is underwritten by a syndicate of investment dealers led by Scotia Capital Inc. The expected closing date for the offering is June 12, 2007.<\/p>\n<\/blockquote>\n

The issue is rated P-2(low) by S&P<\/a> and Pfd-3 by DBRS<\/a>.<\/p>\n

I will provide more information as it becomes available.<\/p>\n

Update, 2007-05-29<\/strong>: The\u00a0Preliminary Short Form Prospectus is now available on SEDAR<\/a>, dated May 28, 2007. The redemption terms are:<\/p>\n

\n

Subject to the prior consent of the Superintendent of Financial Institutions (Canada) (the \u201cSuperintendent\u201d) , and subject to the provisions of the Insurance Companies Act (Canada), on and after June 30, 2012, Co-operators General may redeem at any time all or from time to time any part of the outstanding Series C Preference Shares, at Co-operators General\u2019s option, by the payment of an amount in cash (the \u201cRedemption Price\u201d) for each Series C Preference Share of $26.00 if redeemed during the 12 months commencing June 30, 2012, $25.75 if redeemed during the 12 months commencing June 20, 2013, $25.50 if redeemed during the 12 months commencing June 30, 2014, $25.25 if redeemed during the 12 months commencing June 30, 2015, and $25.00 if redeemed on or after June 30, 2016, together in each case with an amount equal to all declared and unpaid preferential dividends up to but excluding the date fixed for redemption. See \u201cDetails of the Offering\u201d.<\/p>\n<\/blockquote>\n

Update, 2007-05-29, #2<\/strong> : Forgot the dividend information!<\/p>\n

\n

The initial dividend, if declared, will be payable on September 30, 2007 and will amount to $0.3767 per Series C Preference Share, based on an anticipated closing date of June 12, 2007. See \u201cDetails of the Offering\u201d.<\/p>\n<\/blockquote>\n

Update, 2007-05-29, #3<\/strong>: Look out below! When priced on the taxable-in-Ontario curve, the curvePrice<\/a> is $23.86:<\/p>\n

\n

Price due to base-rate :\u00a0 23.52
\nPrice due to short-term :\u00a0 -0.49
\nPrice due to long-term :\u00a0\u00a0 1.80
\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 0.00
\nPrice due to Credit Spread (2) :\u00a0\u00a0 0.00
\nPrice due to Liquidity :\u00a0\u00a0 0.63
\nPrice due to Floating Rate :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (3) :\u00a0 -1.78
\nPrice due to error :\u00a0\u00a0 0.18
\nPrice due to Credit Spread (High) :\u00a0\u00a0 0.00
\nPrice due to Credit Spread (Low) :\u00a0\u00a0 0.00<\/p>\n<\/blockquote>\n

Update, 2007-5-31<\/strong>: It’s getting worse! The curve price is now $23.54!<\/p>\n

Update, 2007-06-01:<\/strong> Curve Price now $23.45<\/p>\n

Update, 2007-06-04:<\/strong> Curve Price now $23.36<\/p>\n

Update, 2007-06-05:<\/strong> Curve Price now $23.18<\/p>\n

Update, 2007-06-06:<\/strong> Curve Price now $23.11<\/p>\n

Update, 2007-06-07:<\/strong> Whoosh! Curve Price now $22.67<\/p>\n

Update, 2007-06-08:<\/strong> Will the bleeding never stop? $22.57<\/p>\n

Update, 2007-06-11:<\/b> Scheduled to close tomorrow. $22.47\n<\/p>\n

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

In order to pay for the redemption of CCS.PR.A, Co-operators General Insurance is issuing a 5% Perp. They announced via CCN Matthews: today announced that it has entered into an agreement with Scotia Capital Inc. …<\/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-868","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/868","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=868"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/868\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}