Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Hi krazytamak (awesome username, BTW)

Could someone explain how you research this? CEG-PA in Yahoo Finance provides little info. I searched for CEG-PA in EDGAR ticker search and no filings appeared. I then searched for Constellation Energy in EDGAR and went into some recent 10-Qs and searched for CEG-PA and got no hits. My school provides access to Capital IQ and CEG-PA doesn't yield any info in Capital IQ either.

How do you know that the $22.05 represents par of $25 with an interest rate of 8 point something percent? How do you know it's callable in 2013? What is the maturity if it doesn't get called? How do you know whether this debt is backed at the corporate level or if it's project debt? How do you know the seniority of the debt and whether it is secured or not?



Yup - chasing this kind of stuff can be a bit of a pain in the neck. But there's hope.

Probably the best resource for these types of traded debt instruments or preferred is QuantumOnline:

http://www.quantumonline.com/

However, fair warning, this is the first time you'll be confronted with the ever-changing ticker problem associated with some of these types of securities. For example, the Yahoo! quote, as presented in the write-up is CEG-PA. At E*Trade (my broker) it's CEG.PR.A. Bigcharts.com prefers that you enter CEGPRA.

At QuantumOnline, to get the goods on this security, enter: CEG-A

I don't know why they do this (non-standard ticker) - it is the price of chasing such things.

Here's the QuantumOnline summary of this security:

Constellation Energy Group Inc., 8.625% Series A Junior Subordinated Debentures, issued in $25 denominations, redeemable at the issuer's option on or after 6/15/2013 at $25 per share plus accrued and unpaid interest, and maturing 6/15/2063 which may be extended to 6/15/2068. Interest distributions of 8.625% ($2.15625) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which is the close of the business day immediately preceding the payment date (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Distributions paid by these debt securities are interest and as such are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The company has the right, at any time, to defer dividend payments for up to 10 consecutive years (but not beyond the maturity date). Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. The Notes are unsecured, subordinated obligations of the company and will rank junior and be subordinated to all existing and future senior unsecured and unsubordinated indebtedness of the company.


Now, if you'd like to parse the nitty-gritty offering details, you can read the prospectus here at the SEC website:
http://www.sec.gov/Archives/edgar/data/1004440/0000950120080...

The answers to your questions should be found therein.

Best,

Jim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.