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Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA


Primary Symbol: PTA

The Funds primary investment objective is high current income. The Funds secondary investment objective is capital appreciation The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets (i.e., net assets plus assets obtained through leverage) in a portfolio of preferred and other income securities issued by U.S. and non-U.S. companies, which may be either exchange-traded or available over-the-counter. In pursuing its investment objectives, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income generated by the Fund. There can be no assurance that the Fund will achieve its investment objectives.


NYSE:PTA - Post by User

Post by WCSB2013on May 07, 2014 8:52am
246 Views
Post# 22532617

warrant question

warrant questionwt.b warrants allow 1 purchase at $0.35

assume say 1/7th of shares outstanding have warrant dilution built in til may 9th

if people piled in at the close trying to get into on the perceived pop up on Monday due to the removal of upto 14% overhang, then could we not see a $0.04 to $0.05 move in the share price by Friday pm from its current level...driving it upto to the exercise price

if that occurred and if the company has a NCIB in place to buy back upto 10% of its own shares could they not use the warrants expiring on Friday as a mechanism to buy back their own shares in T+3 Days at a fixed price of 35 cents even if the share price is well north of 35 cents? with all the cash on hand could they not use these warrants to help obtain the shares they need to acquire suroco? if the bought all $35MM worth of expiring warrants (not going to happen, but hypothetically) they could save upto 14% on the acquisition of SRN couldn't they? 

my question is that aren't warrant direct from the company treasury and aren't they negotiated directly with the company itself...as opposed of via markets, so is their some restriction from the company buying their own warrants to facilitate a share repurchase before the end of the day?

i am probably misreading how they work...just curious what consensus is out there...
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