Assignment:
Postmedia Network Announces Closing of Offering of C$250 Million of Senior Secured Notes
TORONTO--(BUSINESS WIRE)--August 16, 2012--Postmedia Network Canada Corp. (the "Company") (TSX: PNC.A, PNC.B) announced today that it has issued CAD$250 million in aggregate principal amount of 8.25% senior secured notes due August 16, 2017 (the "Notes").
An investor buys the Postmedia bond in the primary market at par (100%). Upon reviewing the bond trust indenture, the investor sees the following call schedule:
Optional Redemption.
On and after August 16, 2015, the Issuer may redeem all or, from time to time, part of the offering at the following redemption prices (expressed as a percentage of principal amount of the Notes to be redeemed):
Year Percentage
2015 106.188%
2016 104.125%
2017 100.000%
a) Calculate the yield to call for each of the call dates. Show all of your work.
b) Under what circumstances (name two) would Postmedia Network call the bond early?