I pulled the below info off of ypg website,
it looks like preferreds are basically good to 2014,
how can you lose - 1.6875 * 3 = 5.0625
price is now under 5.00.
comments please?
The issue will be led by a syndicate of underwriters including CIBC and Scotia Capital Inc., acting as joint book-runners. The Series 3 Preferred Shares will pay cumulative dividends of $1.6875 per share per annum, yielding 6.75% per annum, payable quarterly, for the initial five year period ending September 30, 2014. The dividend rate will be reset on September 30, 2014 and every five years thereafter at a rate equal to the 5-year Government of Canada bond yield plus 4.17%. The Series 3 Preferred Shares will be redeemable by the Issuer on or after September 30, 2014, in accordance with their terms.
Holders of the Series 3 Preferred Shares will have the right, at their option, to convert their shares into cumulative floating rate preferred shares, series 4, (the “Series 4 Preferred Shares”) subject to certain conditions, on September 30, 2014 and on September 30 every five years thereafter. Holders of the Series 4 Preferred Shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada Treasury Bill yield plus 4.17%.