Author Topic: PVF - Partners Value Investments LP  (Read 26893 times)

Rod

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Re: PVF - Partners Value Investments LP
« Reply #60 on: August 17, 2020, 09:18:27 AM »
They haven't raised debt before. Leverage has been through preferred shares in the past. Anyone have any thoughts?


https://www.pvii.ca/~/media/Files/P/PVII/press-release/Partners%20Value%20Investments%20to%20issue%20CDN$150%20million%20of%20notes.pdf


Toronto, August 14, 2020: Partners Value Investments LP (the “Partnership”, TSXV: PVF.UN and PVF.PR.U) and its subsidiary, Partners Value Investments Inc. (the “Issuer” and together with the Partnership, the “Companies”, TSXV: PVF.WT), announced today that the Issuer has agreed to issue CDN$150 million of senior unsecured notes due 2027 (the “Notes”). The Notes will bear interest at a rate of 4.375% per annum, payable semi-annually and will mature on November 15, 2027. The net proceeds from the sale of the Notes will be used for general corporate purposes. The offering is expected to close on or about August 21, 2020, subject to customary closing conditions.

I think it’s just much cheaper to issue debt versus preferred shares right now.


bizaro86

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Re: PVF - Partners Value Investments LP
« Reply #61 on: August 17, 2020, 11:01:32 AM »
The preferred share market has seen very little new issuance on Canada lately, because it is historically expensive compared to the debt markets. I doubt its a strategy change, this is just cheaper capital (given tax deduction on interest).