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Big Banc Split Corp T.BNK

Alternate Symbol(s):  T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.


TSX:BNK - Post by User

Bullboard Posts
Post by PUNJABIon Feb 15, 2013 2:56pm
226 Views
Post# 20997346

Question for the board

Question for the board

BNK announced capital budget of $247m for 2013 which will be fully financed with the funds generated from operations. Last quarter they earned $12.2m.  There could be some non cash expense items such as $15.6m deletion & depreciation still it does not add up. Cash on hand is only $21.6m inventory only $11m There is account receivables if $75.6m but there seems to be a problem with AR. $25m is due from one domestic customer which is past due ( default) the payment is subject to debt financing. This does not sound good at all. $55 is due from petroleum refineries of which $27.8m is due in 30 days.  The rest for a longer period of time. There seems to be some issues with AR specially for $25m. The company has net working capital of $106m but the actual working capital may be much less than that due to issues with AR & the time frame. So how are they going to fund the buget of $247 for 2013 from funds generated from operations. Did they get new lines of credit but borrowed money is still not funds from operations.

Bullboard Posts