Crossing my fingers that the participation rate will max out. Would love to see their Tier 1 and Teir 2 levels improve to their estimated high participation levels. Only issue is that Scottrade is ripping me off. Charging $25 fee for requesting a conversion. Any other broker charging similiar fees?
When did you buy the shares? If you were a holder before the record date, you should have received notification to vote your proxy. I got mine via e-mail (but I'm set up to vote that way with my broker). If you were a holder pre-early december, call your broker and find out what's up. It's my understanding that the consent and tender are unlinked. I am sure that a vote for consent does not tender shares. I'm not positive, but as I understand it, tendering shares does not trigger a yes vote on the preferred proxy issues. That COULD be the case, but I DON'T THINK SO.
Either way, you might want to make sure that your shares are voted. A non-vote is a NO vote, and success of the consent solicitation is more important than the tender itself. If it fails, the tender is null and void, by definition.
As I UNDERSTAND it, with all the caveats associated. I'm just a guy reading legalese, not a lawyer reading legalese.
I tendered 5000 yesterday with Fidelity, and I believe the cost was $30. Now, with CBC common tanking, I'm wondering if I did the right thing. Is it possible to "Un-tender" shares? If CBC hits 0.30 that is what I will do.
I believe you can reverse your tender. But, you may lose your reorganization fee (or be charged another even???)
I don't think a knee-jerk reaction is necessarilly wise. Common is going to be ultravolatile as this tender situation unwinds. It should be expected...
To me, you need to have your eye on the ball long term, and protect your downside. I kept my position small in the first place, and sold half to lock in at most a trivial loss if everything bombed out. Then I tendered half of what's left. There are three outcomes, obviously:
If CBC fails outright, I lose what's left (inconsequential to me).
If CBC survives, but common doesn't recover, then I have the residual trust preferreds interest on which is due in three years.
If CBC survives and common rallies long-term, I have the upside of common.
So, I'll play all three games. When it comes right down to it, it's a gamble any way you slice it. Protect your downside at the start, then let it unwind...
As an aside, I don' think that the tender for CBC-A or CBC-B is necessarilly the key. The consent solicitation and tenders on the other trusts are probably more critical. If they can modify the indentures, then institutional participation could be easier to induce than retail participation. Those other trusts comprise 77% of the existing TruPs. Getting them to play ball could be sufficient. It's also significant that in the event of the success of the consent solicitation, then even a minority of each trust can be exchanged. No need for a majority of each to be successful...