Global Champions Split Corp., proud issuer of GCS.PR.A, has been upgraded to Pfd-2 by DBRS:
DBRS Limited (DBRS) has today upgraded the rating of the Class A Preferred Shares, Series 1 (the Preferred Shares) issued by Global Champions Split Corp. (the Company) to Pfd-2 from Pfd-2 (low). The Company issued 2,000,000 Preferred Shares at an issue price of $25.00 per Preferred Share and an equal number of capital shares (the Capital Shares) on March 7, 2013.
The redemption date for the Preferred Shares will be on or about July 31, 2019. Net proceeds from the initial offering were used to invest in a portfolio of common shares of 15 international large capitalization companies (the Portfolio).
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The Portfolio may be comprised of non-U.S. dollar denominated securities. The Company intends to substantially hedge all of the Portfolio’s investments denominated in currencies other than the U.S. dollar back to U.S. dollars. Dividends received on the Portfolio securities denominated in currencies other than U.S. dollars are currently being hedged back to U.S. dollars, but the Company is not required to do so. Distributions to holders of the Preferred Shares are denominated in Canadian dollars and are hedged back to U.S. dollars unless the net asset value (NAV) of the Company is less than the aggregate original issue price of the Class A Preferred Shares.
On March 7, 2014, DBRS confirmed the rating of the Preferred Shares at Pfd-2 (low) mainly based on the sufficient downside protection available to holders of the Preferred Shares. Since then, the NAV of the Company (after adjusting for exchange rates) has increased, with downside protection increasing from 52% to 61% and remaining with a positive trend over the past few months. As a result, the rating of the Class A Preferred Shares has been upgraded to Pfd-2 from Pfd-2 (low).
GCS.PR.A is a SplitShare paying 4.00% (probably) eligible dividends, maturing July 31, 2019; it commenced trading March 7, 2013 after its initial mention on PrefBlog on 2013-2-15.
This entry was posted on Friday, March 6th, 2015 at 8:40 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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GCS.PR.A Upgraded to Pfd-2 by DBRS
Global Champions Split Corp., proud issuer of GCS.PR.A, has been upgraded to Pfd-2 by DBRS:
GCS.PR.A is a SplitShare paying 4.00% (probably) eligible dividends, maturing July 31, 2019; it commenced trading March 7, 2013 after its initial mention on PrefBlog on 2013-2-15.
This entry was posted on Friday, March 6th, 2015 at 8:40 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.