On Thursday, the company announced that it will redeem TruPS
worth $345 million, including the 8.
However, the early redemption of the instruments does not benefit owners of TruPS
because they would lose a future income and they may have to reinvest at prevailing low rates.
are created when a special purpose entity, which is controlled by a bank holding company, issues preferred stock.
7 million of collateral in 11 CDOs began deferring interest on their TruPS
in 4Q'12, comparable to the amount seen in 3Q'12.
In the first opposition to the deal, the plaintiffs accused both BB&T and BankAtlantic of structuring the transaction in such a way that the acquirercould evade TruPS
CDOs has continued to decrease reaching 30.
The Series F TRuPS
were issued on September 11, 2003 and were redeemable at Lincoln's option on or after September 11, 2008.
3 million of collateral in 18 CDOs) defaulted on their TruPS
CDOs in third-quarter 2012 (3Q'12), slightly lower than the six banks that defaulted in 2Q'12.
The terms and conditions of the Offer, which will expire as shown above unless extended or earlier terminated by the Company, is described in the Offer to Purchase for Cash and Consents Solicitation Statement (the "Offer to Purchase Statement") and the related Letter of Transmittal and Consent, each dated as of February 1, 2010 and previously sent to holders of the TruPS
To account for a potential underperformance of the oversized positions, Fitch applied a sensitivity scenario as described in the criteria report 'Global Surveillance Criteria for TruPS
CDOs,' dated July 11, 2012.
Beginning this month Fitch will be publishing only the 'Fitch Bank TruPS
CDO Default and Deferral Tables' on a monthly basis.
The Series E TRuPS
will be redeemed at a price of $25 per security, plus any accrued and unpaid distributions for the period up to but excluding the redemption date.