Partners Value Split Corp. has announced:
the completion of its previously announced issue of 6,000,000 Class AA Preferred Shares, Series 13 (the “Series 13 Preferred Shares”) at an offering price of $25.00 per Series 13 Preferred Share, raising gross proceeds of $150,000,000. The Series 13 Preferred Shares carry quarterly fixed cumulative preferential dividends representing a 4.45% annualized yield on the offering price and have a final maturity of May 31, 2029. The Series 13 Preferred Shares have been listed and posted for trading on the Toronto Stock Exchange under the symbol PVS.PR.K. The net proceeds of the offering will be used by the Company to pay a special dividend on the Company’s capital shares.
Prior to the closing of the offering, the Company subdivided the existing capital shares held by Partners Value Investments Inc. so that there are an equal number of preferred shares and capital shares outstanding.
PVS.PR.K is a SplitShare, 4.45%, 7-year issue announced 2022-3-17. It will be tracked by HIMIPref™ and has been added to the SplitShare subindex. Neither the press release nor anything on SEDAR mentions their screw-up with the definition of the ‘Series 13 Redemption Date’, let alone clarifying the issue. Naturally, given the uselessness of the company administration, my ‘phone call asking for clarification has not been returned.
The issue traded 329,875 shares in a range of 24.80-91 before closing at 24.80-85. Vital Statistics are:
| PVS.PR.K | SplitShare | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 24.80 Bid-YTW : 4.60 % |
Any comment on these split share preferreds ?
I have switched to some of these as opposed to the rate-resets. Good dividend, and known redemption date.
I only buy if I can get them near NAV, and if they are not too susceptible to NAV erosion if the market dips.
SplitShares have their place in many portfolios. Several are recommended in each edition of PrefLetter.