Q: given debt reduction is a target for this company what is the likelihood they would buy up their pref's on the open mrkt....would be at a significant discount to maturity value...do they need to file paperwork to buy the pref's in the mrkt and as far as you can tell has the paperwork been filed ?...are they buying in the market ?...many thanks
5i Research Answer:
Paperwork would have to be filed with regulators for any preferred share buyback, and we do not see any filings in regard to this. The company does have a common share buyback in place. While they have dividend obligations, preferred shares are seen as more-permanent capital and while a buyback is always a possibility, we would expect CVE to concentrate more directly on debt reduction. Debt is down more than $4B since the end of 2021.