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Discussion Starter #1
Greetings,

I have been on the lookout for some preferred shares and this just popped up:

Power Financial Corporation
Perpetual Non-Cumulative First Preferred Shares, Series O


Issuer: Power Financial Corporation

Issue: Non-Cumulative First Preferred Shares, Series O

Use of Proceeds:

The net proceeds will be used to supplement the Corporation’s financial resources and for general corporate purposes.

Dividends:

5.80% per annum, payable quarterly on a non-cumulative basis on the last day of January, April, July, and October in each year. The initial dividend will be paid on January 31, 2010 and will be $0.45288 per Preferred Share based on an anticipated closing date of October 9, 2009.

Ratings:
S&P: P-1(Low)
DBRS: Pfd-1(low)

Listing:

An application will be made to list the Preferred Shares on the Toronto Stock Exchange.

You can review the complete preliminary prospectus here.

About the Offering

Issuer: Power Financial Corporation
Issue: Non-Cumulative First Preferred Shares, Series O
Price: $25.00
Sizing: $150,000,000 (6,000,000 Preferred Shares ).
Closing: October 9, 2009
Unfortunately, this is one of those "bought" deals so no prospectus is available.
However, it looks like unlike most recent issues, this is not a rate-reset pegged to one of the Govt. bond rates.
The 5.8% appears to be fixed.
So with rising interest rates, these shares could really drop in value like a rock.
OTOH, 5.8% is attractive as per current rates.
Am I reading this correctly?
 

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Harold, there was a similar straight perpetual offering a few days ago by Great-West Life. It's discussion was covered under this thread:

http://www.canadianmoneyforum.com/showthread.php?t=1085

If you like straight perpetuals, there are others you may want to consider trading in the secondary market at discount to par, comparable credit, but offering a similar current yield of around 5.8% or better - which provides an opportunity for capital gains should the issue ever gets called:

POW.PR.B
SLF.PR.D
SLF.PR.B
GWO.PR.H
HSB.PR.D
SLF.PR.A
CM.PR.I
PWF.PR.F

Good luck....btw, the board shows PWF new offering is now closed.

Disclosure: own SLF.PR.A
 

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Discussion Starter #3
Good luck....btw, the board shows PWF new offering is now closed.
Which board?
My brokerage (E*Trade) told me that the issue is open until tonight.
Thanks for your recommendation and the pointer to the other thread.
I'm back here after a long time and still trying to catch up....
 

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Which board?
My brokerage (E*Trade) told me that the issue is open until tonight.
Thanks for your recommendation and the pointer to the other thread.
I'm back here after a long time and still trying to catch up....
My TD Waterhouse new offering board lists this as closed (since yesterday) - however, it still may be still available elsewhere (like e-trade).
 
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