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Which projects are most likely to get cancelled?

There is this huge amount of pressure to get their tier I capital above 10x.

Remember that these CaTS aren't true debt (although they are bought by typical debt purchases). Failure to pay the coupon doesn't trigger bankruptcy. To that end they are more like prefs.

Also remember that the interest is tax deductible, so they coupon is really only costing them ~6%. Common equity is doing a 5.5% div right now, so it's slightly less shocking when put in that context.


cdr108 said:
Hi Adam, do you know the details for the above?

CUSIP or sec. ###?
When is the first callable date?

That's a crazy rate ... are there issues with TD's deposit reserves to be offering such a premium ??!!??
Click to expand...
 
MikeMang said:
The prelim prospectus is on SEDAR.com. Just search for TD Capital Trust IV. You can learn about structure there.
Click to expand...


Yeah, I did that last night but it's a short form prospectus with all the details left blank. I did read TD Carts III and that was offering 7+%.

Sounds like this could be a good candidate for the TFSA.
 
TD unleashes a billion CaTS

http://www.theglobeandmail.com/serv...streetwise20090114164708/WBStory/WBstreetwise


found the following details in the Globe.


Toronto-Dominion Bank unleashed a whole lot of CaTS on Wednesday, bolstering its balance sheet by launching a marketing campaign for up to $1-billion of new capital.

TD Bank is selling a new instalment of what's known as innovative Tier 1 Capital - all the banks have sold these securities - that the bank brands as CaTS (Capital Trust Securities). It looks a lot like debt, and it is sold based on yield, but counts as equity in the eyes of regulators. TB Bank started its campaign with a $600-million target, but strong demand bumped the size of the offering to $1-billion.

Bank of Nova Scotia is also expected to tap this market - both banks are at the lower end of the spectrum when it comes to Tier 1 Capital ratios at Canadian banks.

TD Bank is selling two classes of CaTS, both of which have a provision meant to ensure the bank retires the securities in 10 years' time. This became a popular selling featuring on securities late last year, when Deutsche Bank broke with tradition by extending the life of securities that investors expected would be repurchased.

There is a new issue of $550-million of CaTS that pay a 9.253 per cent yield, and come due in 10 years' time. That's a premium of 676 basis points to the comparable Government of Canada bond. This issue resets at a spread of 1000 basis points to government debt if the securities are not retired in 2019, which gives the bank an enormous incentive to buy back the CaTS.

The second, $450-million tranche comes with a 10 per cent yield over the next 20 years, a premium of 649 basis points to the comparable government bond. Again, the spread soars to 975 basis points if this security is not retired in 2039.
 
Projects Cancelled Due to Credit Crunch

Relatively new to UrbanTO but have followed TO Real Estate for past 12 years both as consumer and investor and here's my two cents on projects below (based on a few agents and develoeprs I know in the biz)

-Minto King West (being altered) - DEFINITELY ON HOLD
-Parc (BJL) - DEFINITELY ON HOLD
-King East (king/parliament) - SLOW SALES - DON'T THINK IT WILL MAKE IT

I'm also concerned about the various Streetcar Developments along King East corridor in Corktown despite West DonLands Redevelopment
check out this morsel from WDL redevelopment website...this can't be good...

http://www.torontohousing.ca/webfm_send/5309/1

Incidently, am I the only one who has noticed a "for lease" sign on BJL's new office site across from Minto King West? And not on the bar/restaurant part either..the actual office. Anyone know what's up with that? Thought he was putting his offices there? Think he's over-leveraged...
 
RealEstateGirl said:
Relatively new to UrbanTO but have followed TO Real Estate for past 12 years both as consumer and investor and here's my two cents on projects below (based on a few agents and develoeprs I know in the biz)

-Minto King West (being altered) - DEFINITELY ON HOLD
-Parc (BJL) - DEFINITELY ON HOLD
-King East (king/parliament) - SLOW SALES - DON'T THINK IT WILL MAKE IT

I'm also concerned about the various Streetcar Developments along King East corridor in Corktown despite West DonLands Redevelopment
check out this morsel from WDL redevelopment website...this can't be good...

http://www.torontohousing.ca/webfm_send/5309/1

Incidently, am I the only one who has noticed a "for lease" sign on BJL's new office site across from Minto King West? And not on the bar/restaurant part either..the actual office. Anyone know what's up with that? Thought he was putting his offices there? Think he's over-leveraged...
Click to expand...



Welcome to the forum RealEstateGirl.

I have not heard about BJL's 'for lease' sign at his new office ... that is very interesting. I'm inclined to agree with you that he's over-leveraged.

Perhaps he's a broker that started to believe his own hype; and got into property development too quickly with too many projects.
BTW, what ever happened to the tv program 'Big City Broker'?
Maybe time to change it to Big City Broke ... :eek:
 
RealEstateGirl said:
No, the show is still on. Their on taping season right now for the next season.
Will likely start up again in April on TV
;)
Click to expand...

They are definitely still taping it for April, one of my co-workers has been taped for the next season, not sure if he will make it on tv yet or not.
 
21 Widmer, Daniels, 44s, Kirkor - on HOLD

This project has been put on HOLD !

http://network.nationalpost.com/np/...t-industry-has-tanked-councillor-laments.aspx

On the southeast corner of Adelaide and John streets, spitting distance from Metro Hall, two parking lots abut the old brick home of the Fox and Fiddle pub. Mr. Vaughan said developers recently purchased those lots from the Farber family, assuming “huge mortgages.†City Council is studying applications for two towers here, 44 and 42 storeys, but financing troubles mean those towers now are delayed, he said.

According to Mr. Vaughan’s web site, the two John/Adelaide projects are a Daniels Corp. application for a 44-storey tower, at 21 Windmer St., and an application by Pinnacle International, a Vancouver-based condo builder, for a 42-storey tower at 295 Adelaide Street W. Those companies did not immediately return calls.
 
more projects on HOLD

So it appears Adelaide and John (Pinnacle, 42s, Hariri Pontarini) will also be on hold ...

cdr108 said:
http://network.nationalpost.com/np/...t-industry-has-tanked-councillor-laments.aspx
Click to expand...

likewise, construction of aloft and ELEMENT Hotels ON HOLD (560 Front W, Manga, 14s, P+S) is also on hold according to this souce (whom works on the site)

DAMB said:
I just recieved this email

Please be advised, the Owner has given notice to Buttcon to suspend all construction work on the project after the last section of ramp is poured on the P-1 level.

No work is to continue beyond this point until further advised by the Owner.

Also, all manufactured materials must also be put on hold with suppliers until further advised.

It is not the intention of the Owner to stop the project but rather suspend all work until financing for the project is completed.
Click to expand...
 
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