What does the .UN mean?

[Kempf]

Hi guys,

I'm Brazilian and I'm checking some Canadian companies Market Cap, but I didn't understand what does the '.UN' mean in the end of some stocks.

For example, New Flyer. It has two stocks: NFI and NFI.UN

Both have the same financial statements, head quarters, etc.

If I would like to be 100% owner of New Flyer, the ammount I should pay would be the sum of both caps?

Eg:

NFI as 04/Jan = 264M
NFI.UN as 04/Jan = 38M

Total = 302M

Is that? If it's not, please, could you explain?

Thanks

[DCA]

Hi Kempf,

   Strictly speaking it means "Unit", however, in the case of New Flyer the NFI.UN is an IDS:

Income Deposit Security (IDS)
An exchange-traded, fixed income-like instrument consisting of a subordinated debt security and a share of common stock packaged together to form a tax-efficient delivery mechanism to distribute an issuer's free cash flow to its investors. Investors are paid dividends from the common share component and interest from the subordinated debt. The structure was created for U.S.-based companies to replicate the economic attributes of the Canadian income trust structure - providing steady, high-yield returns to U.S. and Canadian investors in U.S. companies. IDSs do not use the trust structure. Also known as income participating securities (IPS).

Specifically NFI.UN consists of a share of NFI plus a share of a 14% bond.

NFI was originally structured as an Income Trust.  The tax laws changed and New Flyer is gradually whittling down the outstanding NFI.UN and in future NFI will be the remaining stock.

So, yes, the sum of both caps is the market cap of New Flyer.

D

[Kempf]

DCA,

Thank you so much for your answer. I really appreciate it.

Cya!

[Kempf]

Is there any way to find out who are the main/major investors/stakeholders of this company?

I've tried to search in the IR section of the company's website, SEDAR and TSX, but I didn't find.

Thanks in advance. If anytime you need iformation about Brazilian market, just let me know.

Kind Regards.

[DCA]

Hi Kempf,

Mawer Investment Ltd.http://www.mawer.com/. 12 %
Coliseum Capital Management http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=25132740 10 %

D

[Kempf]

DCA

Thanks again. How can I positive you due your answers?

How/Where did you find the perentual? I want to check some other companies, but I wouldn't like to bother you.

I'm seeking, also, for the main stakeholders for both, the common and the preffered shares. Is there a way to find it?

Rgds,

[DCA]

Hi Kempf,

The information is in the AGM Management Information Circulars.  Usually these are available on the IR part of websites and the companies are required to report any entity that has 10% or greater beneficial control.  Any breakdown of share types, warrants, etc. would likely be given at the same point.

D