On May 10, I mentioned that I saw a notice of a new issue of a 5.5% debenture from North American Construction Group and that I put in for some. It seems the maximum allowed was $25,000 which seemed low. It was apparently heavily over-subscribed and I was allocated only 30% of what I put in for. Given the strong interest that seemed to be a strong indication that the 5.5% yield was deemed attractive by the market given the risk.
I thought it might start trading somewhat above $100 but if it came out at $100 to $101, I planned to buy more.
It came out today and traded from $100 to $101 and closed at $100.60. I bought more today at $100.60. I’m tempted to add more yet, but I really don’t know anything about the company except that when I looked on May 10, I thought the company was reasonable strong financially – but that was based on a very quick look. And I am comforted by the fact that the issue was heavily over-subscribed.
Anyhow, this is a seven year debenture paying 5.5% and I think that seems attractive even if you pay $101 or a bit higher to get it. I may add this to the list on the Subscriber Home page after I get a chance to look closer at the company.
If interested this can be bought under the symbol NOA.DB.B on Toronto.