TSX:AX.PR.E - Post by User
Comment by
Frankie10on May 27, 2024 10:59am
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Post# 36058824
RE:RE:RE:RE:Cominar plans 200 meter residential towers at Gare Centrale
RE:RE:RE:RE:Cominar plans 200 meter residential towers at Gare Centrale The 18% is simply accounting at this point. A mechanism to slowly transfer the value of the commons to the prefs.
To answer your question sir, they are redeemable by Iris at any time as per audited financials.
Iris (and Cominar) do not have the liquidity necessary to redeem them. A capital injection would be required by either raising funds from common holders or via debt. Iris is just a shell to hold Cominar - Cominar is fully levered - not sure who would lend to Iris and at what rate.
You make a good point Bunny. If all pref holders are willing to redeem, there is no issue. If there is a party that does not redeem, the commons will rank under the remaining prefs which would continue to drain equity at a rate of 18% per year of the face value of the prefs remaining -- a very slow death to the commons. A point I overlooked as I assumed all parties were acting in unison - very naive of me.