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.

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Big Banc Split Corp

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Post by PUNJABIon Jan 28, 2016 8:48am

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Post# 24500822

In September BNK was in compliance

As of September they had huge spread over target ratios and a non issue.

In Dec 2015 & for another few quarters they should be fine, but if the oil stays around $30 for over year then it may become uncomfortable because only small portion of the production is hedged for 2016 & no hedges for 2017. $20 million debt payment may have to be made if not renewed.

In September they had $46.3 m cash they can pay the debt if not renewed & are using the cash to pay 10 % deposit of $5.7m & have to pay $4.2m every month regarding the tax issue. The timing of payment for tax issue is really bad. If they are able to resolve this issue in their favour soon then it will give the company more breathing room.

BNK has relatively very small amount of debt as compared to most oil companies with similar production.

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