TSX:BPO.PR.A - Post by User
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SONOFFERGUSon Apr 29, 2024 5:50pm
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Post# 36013583
RE:RE:RE:Remember, Prefers "cost" more than debt... company can't
RE:RE:RE:Remember, Prefers "cost" more than debt... company can'tCRAZY, I am the idiot -- for trying to get you on the right track.
Yep, some banks have chosen to redeem.
Yep, BPO is buying under NCIB.
And? You seem to think that the redemption fairy (or Easter bunny?) is coming to redeem BPO prefs because of what the banks are doing. Absofukkinglutely not. Zero chance. None.
Check the chart on BPO.PR.C, which spent a lot of time trading above par on the theory that it would be redeemed because of its massive (518bps!) fixed spread. That trade very much did not work out.
Is there a chance they run a tender offer or reorg the prefs into the mother ship so Bruce & Co. can rid themselves of this headache? I think a good chance. BN is all about fundraising, and the BPO prefs are a black mark on their record and bring unnecessary focus on the real estate portfolio challenges. That's why I'm big long.