I have been advised of a new issue from EPCOR Power Equity Ltd, 4.85% Perpetuals.
Issue size is 5-million shares = $125-million.
Ratings are P-2(low) by S&P, Pfd-3(high) by DBRS
Settlement is May 25.
As yet I do not have the redemption schedule, so I’ll have to update this later.
Update: The press release states:
The Issuer has also granted the underwriters an over-allotment option, exercisable at any time up to 30 days following closing of the Offering, to acquire an additional 750,000 Series 1 Shares at the issue price of $25.00 per Series 1 Share. If the option is fully exercised, it would increase the total gross proceeds of the Offering to $143.75 million….
The Series 1 Shares will pay cumulative dividends of $1.2125 per share per annum, yielding 4.85% per annum, payable quarterly on the last business day of March, June, September and December of each year. The first quarterly dividend of $0.42305 per share is expected to be paid on September 28, 2007.
The Series 1 Shares will not be redeemable by the Issuer before June 30, 2012. On or after this date, the Series 1 Shares will be redeemable by the Issuer in whole or in part, at the Issuer’s option, on at least 30 and not more than 60 days prior notice.
… but nothing about the schedule of redemption prices.
Update: I am advised that:
The Series 1 Shares are not redeemable by the Corporation before June 30, 2012. On or after June 30, 2012, the Series 1 Shares will be redeemable by the Corporation in whole or in part, at the Corporation’s option, on at least 30 and not more than 60 days prior notice by the payment of the amount in cash per Series 1 share. Such redemption may be made upon payment in cash of the amount of $26.00 per Preferred Share if redeemed during the 12 months commencing June 30, 2012; $25.75 per Preferred Share if redeemed during the 12 months commencing June 30, 2013; $25.50 per Preferred Share if redeemed during the 12 months commencing June 30, 2014; $25.25 per Preferred Share if redeemed during the 12 months commencing June 30, 2015; and, if redeemed on or after June 30, 2016 at a Redemption Price of $25.00 per Series 1 Share plus, in each case, all accrued and unpaid dividends up to but excluding the date fixed for redemption.
[…] This issue was announced May 7. It seemed reasonable – if aggressive – at the time … but the credit ratings aren’t all that great AND it’s a perp. […]