{"id":9749,"date":"2010-02-18T10:52:28","date_gmt":"2010-02-18T14:52:28","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=9749"},"modified":"2010-02-18T10:52:28","modified_gmt":"2010-02-18T14:52:28","slug":"acopra-to-be-redeemed","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=9749","title":{"rendered":"ACO.PR.A to be Redeemed"},"content":{"rendered":"

ATCO Ltd. has announced<\/a>:<\/p>\n

it will redeem on March 23, 2010 all of its outstanding 5.75% Cumulative Redeemable Preferred Shares, Series 3 at a price of $25.586644 (representing the $25.00 designated capital of each share and a prescribed premium of $0.50 per share plus $0.086644 of accrued and unpaid dividends per share). The total cost of this redemption is $153.5 million.<\/p>\n\n\n\n\n\n
 <\/td>\nShares<\/strong><\/td>\nTSX Stock<\/strong><\/td>\nRedemption Price<\/strong><\/td>\n<\/tr>\n
Shares<\/strong><\/td>\nOutstanding<\/strong><\/td>\nSymbol<\/strong><\/td>\nPer Share ($)<\/strong><\/td>\n<\/tr>\n
5.75% Series 3<\/td>\n6,000,000<\/td>\nACO.PR.A<\/td>\n25.586644<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

These dividends are eligible dividends for Canadian income tax purposes.<\/p>\n

A formal notice and instructions for the redemption of the Series 3 Preferred Shares will be sent to preferred shareholders in accordance with the conditions attached to the Series 3 Preferred Shares.<\/p><\/blockquote>\n

ACO.PR.A closed last night at 26.20-38, so the risks of holding issues with negative yields-to-worst are illustrated yet again! Of course, one reason they are priced so high appears to be buying by CPD and other indexers<\/a> in response to the issue’s addition to TXPR<\/a> in the January rebalancing.<\/p>\n

ACO.PR.A was last mentioned on PrefBlog in connection with the calculation of yield-to-issuer-best<\/a>. It is tracked by HIMIPref™ and is a constituent of the Operating Retractible subindex.<\/p>\n

Update<\/b>: I have uploaded a Chart of the ACO.PR.A \/ CM.PR.A<\/a> bid prices from 2009-12-31 to 2010-2-17 (CM.PR.A is the best comparator I can find, although not a very good one). There is a clear bump in the price of ACO.PR.A in the period in which it may be assumed CPD was buying. See the post POW.PR.C: Yes, CPD is the Buyer<\/a> for another example.<\/p>\n

Update, 2010-3-16<\/b>: S&P announcement<\/a> of removal from TXPR.<\/p>\n","protected":false},"excerpt":{"rendered":"

ATCO Ltd. has announced: it will redeem on March 23, 2010 all of its outstanding 5.75% Cumulative Redeemable Preferred Shares, Series 3 at a price of $25.586644 (representing the $25.00 designated capital of each share …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-9749","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9749","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=9749"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9749\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}