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Constellation Software Inc. (CSU)
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Constellation Software Inc. Unsecured Subordinated Floating Rate Debentures Series 1 (CSU.DB)
Q: I am holding 200 units and 130 units in registered and cash accounts respectively. Recently a special warrant dividend will be given to each unit of CSU share holders. I do not own the series 1 debenture and have difficulty to comprehend the debenture matters.
Please advise what are the appropriate actions to be taken for unit holders. Thank you for your great service. Bill.
Please advise what are the appropriate actions to be taken for unit holders. Thank you for your great service. Bill.
5i Research Answer:
We assume by 'units' you mean common shares of CSU. If an investor does not own any debentures, the warrants have little use. But, if and when they are listed, they will have some value. It may not be a lot, but when the time comes, as long as commission is less than proceeds, investors can sell the warrants for small cash proceeds.