Dollar Debt Issue Analysis
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Questions and Answers

What is the estimated all-in cost for the Canadian dollar debt if SaskPower had originally issued it?

  • 9.195%
  • 8.50% (correct)
  • 11.671%
  • 9.80%
  • How much of the $50 million debt issue was hedged by currency swaps?

  • $8 million
  • $70 million
  • $42 million (correct)
  • $75 million
  • What was the interest rate for the $194 million debt issue due on March 15, 2008?

  • 9.375%
  • 6.625%
  • 7.375%
  • 7.125% (correct)
  • When was the $100 million debt issue with an interest rate of 9.375% due to mature?

    <p>December 15, 2020</p> Signup and view all the answers

    What is the would-be hedged all-in cost for Canadian dollar debt according to the provided information?

    <p>9.120%</p> Signup and view all the answers

    Based on the text, which debt issue had an interest rate of 8.500% and was due on July 15, 2022?

    <p>$200 million July 15, 2022</p> Signup and view all the answers

    What was SaskPower's average all-in cost of its U.S. debt compared to the equivalent Canadian dollar debt?

    <p>17% lower</p> Signup and view all the answers

    Why did SaskPower choose to issue U.S. dollar debt instead of Canadian dollar debt?

    <p>To benefit from a lower U.S. dollar cost of servicing the debt</p> Signup and view all the answers

    What impact did the depreciation of the Canadian dollar have on the valuation of SaskPower's U.S. debt?

    <p>Increased unrealized foreign exchange losses</p> Signup and view all the answers

    What was the approximate breakeven US dollar rate for the July 20, 1993 issue?

    <p>9.06%</p> Signup and view all the answers

    What type of investors primarily held SaskPower's U.S. dollar debt?

    <p>Institutional investors</p> Signup and view all the answers

    How much of the US$75 million issued on July 15, 2013 was hedged by currency swaps?

    <p>US$75 million</p> Signup and view all the answers

    How were foreign exchange translation adjustments on SaskPower's U.S. debt handled under the Canadian accounting standard?

    <p>Amortized over the remaining term of the debt</p> Signup and view all the answers

    What was the all-in cost at issue for the US$200 million debt on July 15, 2022?

    <p>8.60%</p> Signup and view all the answers

    What characteristic did SaskPower's U.S. dollar debt have in terms of callability and convertibility?

    <p>Non-callable and non-convertible</p> Signup and view all the answers

    Which debt issue had an estimated all-in cost for CA$ debt at issue of CA$1.33?

    <p>December 20, 1990</p> Signup and view all the answers

    On which date did SaskPower issue debt with a US$ rate at issue of 7.55%?

    <p>July 20, 1993</p> Signup and view all the answers

    What percentage of the US$194 million issued on March 15, 2008 was hedged by coupon swaps?

    <p>38%</p> Signup and view all the answers

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