Archive for the ‘Issue Comments’ Category

ALA.PR.I To Be Redeemed

Wednesday, November 25th, 2020

AltaGas Ltd. has announced (on November 20):

its intention to redeem – in accordance with the terms of the Cumulative Redeemable 5-Year Minimum Rate Reset Preferred Shares, Series I (the “Series I Shares”) as set out in the Company’s articles – all of its 8,000,000 issued and outstanding Series I Shares on December 31, 2020 (the “Redemption Date”) for a redemption price equal to $25.00 per Series I Share, together with all accrued and unpaid dividends to, but excluding, the Redemption Date (the “Redemption Price”), less any tax required to be deducted or withheld by the Company.

As previously announced, the Company’s Board of Directors has declared a dividend of $0.328125 per Series I Share for the period commencing September 30, 2020 and ending December 30, 2020 payable to holders of record as of the close of business on December 15, 2020. This will be the final quarterly dividend on the Series I Shares, although holders will receive on redemption of the Series I Shares all accrued and unpaid dividends up to but excluding the Redemption Date.

The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Series I Shares in accordance with the terms of the Series I Shares as set out in the Company’s articles. Non-registered holders of Series I Shares should contact their broker or other intermediary for information regarding the redemption process for the Series I Shares in which they hold a beneficial interest. The Company’s transfer agent for the Series I Shares is Computershare Investor Services Inc. Questions regarding the redemption process may be directed to Computershare Investor Services Inc. at 1-800-564-6253 or by email to corporateactions@computershare.com.

ALA.PR.I is a FixedReset, 5.25%+419M525, that commenced trading 2015-11-23 after being announced 2015-11-12. The issue is tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

GWO.PR.N, GWO.PR.O To Be Extended

Wednesday, November 25th, 2020

Great-West Lifeco Inc. has announced (on November 4):

that it does not intend to exercise its rights to redeem its outstanding Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (the “Series N Shares”) or its outstanding Non-Cumulative Floating Rate First Preferred Shares, Series O (the “Series O Shares”) on December 31, 2020. As a result and subject to certain conditions, holders of Series N Shares have the right to convert all or any of their Series N Shares into Series O Shares, and holders of Series O Shares have the right to convert all or any of their Series O Shares into Series N Shares, on a one-for-one basis on December 31, 2020.

Lifeco will send a formal notice of the foregoing conversion rights to the registered holder of the Series N Shares and the Series O Shares in accordance with the terms and conditions attached to the applicable shares. Holders of Series N Shares or Series O Shares who do not exercise their applicable conversion rights will retain their Series N Shares or Series O Shares, respectively.

The conversion rights are subject to the following conditions, in accordance with the terms and conditions attached to the applicable shares:

(i) if Lifeco determines that, after having taken into account all shares tendered for conversion, there would be less than one million Series O Shares outstanding on December 31, 2020, no Series N Shares may be converted into Series O Shares and all remaining Series O Shares will automatically be converted into Series N Shares on a one-for-one basis on December 31, 2020, and

(ii) alternatively, if Lifeco determines that, after having taken into account all shares tendered for conversion, there would be less than one million Series N Shares outstanding on December 31, 2020, no Series O Shares may be converted into Series N Shares and all remaining Series N Shares will automatically be converted into Series O Shares on a one-for-one basis on December 31, 2020.

In all cases, Lifeco will give written notice to that effect to any registered holder affected by the preceding conditions on or before Thursday, December 24, 2020.

The dividend rate applicable to the Series N Shares for the five-year period commencing on December 31, 2020 and ending on December 30, 2025, and the dividend rate applicable to the Series O Shares for the three-month period commencing on December 31, 2020 and ending on March 30, 2021, will be determined on Tuesday, December 1, 2020 and written notice thereof will be given to the registered holder of the Series N Shares and the Series O Shares on that day.

Beneficial owners of Series N Shares and Series O Shares who wish to convert their shares should communicate as soon as possible with their broker or other nominee to ensure their instructions are followed so that the registered holder of the Series N Shares or Series O Shares (as applicable) can meet the deadline to exercise such conversion right(s), which is 5:00 p.m. (ET) on Wednesday, December 16, 2020.

Lifeco may redeem the Series N Shares, in whole or in part, on December 31, 2025 and on December 31 every five years thereafter for $25.00 per share plus declared and unpaid dividends. Lifeco may redeem the Series O Shares, in whole or in part, on any date for $25.50 per share plus declared and unpaid dividends, unless such Series O Shares are redeemed on December 31, 2020 or on December 31 every five years thereafter, in which case the redemption price will be $25.00 per share plus declared and unpaid dividends.

GWO.PR.N is a 3.65%+130 FixedReset that commenced trading 2010-11-23 after beint announced 2010-11-15. Extension was announced in November, 2015 and the issue reset to 2.176% effective 2015-12-31. There was a 15% conversion to GWO.PR.O, its FloatingReset counterpart.

GWO.PR.O is a FloatingReset, Bills+130, that came into being in 2015 in a 15% conversion from GWO.PR.N.

CU.PR.I : No Conversion To FloatingReset

Tuesday, November 24th, 2020

Canadian Utilities Limited has announced (on November 23):

that after having taken into account all election notices following the conversion deadline for the Cumulative Redeemable Second Preferred Shares Series FF (“Series FF Preferred Shares”) tendered for conversion into Cumulative Redeemable Second Preferred Shares Series GG (“Series GG Preferred Shares”), the holders of Series FF Preferred Shares are not entitled to convert their Series FF Preferred Shares into Series GG Preferred Shares. There were approximately 1,000 Series FF Preferred Shares tendered for conversion, which is less than the two million shares required to give effect to conversions into Series GG Preferred Shares.

The Series FF Preferred Shares will continue to pay on a quarterly basis, for the five-year period from and including December 1, 2020 to but excluding December 1, 2025, as and when declared by the Board of Directors of Canadian Utilities Limited, a fixed dividend based on an annual dividend rate of 4.50%.

For more information on the terms of, and risks associated with an investment in, the Series FF Preferred Shares, please see Canadian Utilities Limited’s prospectus supplement dated September 16, 2015, which can be found under Canadian Utilities Limited’s profile on SEDAR at www.sedar.com.

CU.PR.I is a FixedReset, 4.50%+369M450, that commenced trading 2015-9-24 after being announced 2015-9-14. The issue reset to its minimum rate of 4.50% (unchanged) effective 2020-12-1. It is tracked by HIMIPref™ and is assigned to the FixedReset-Premium subindex.

Ticker Change: GMP.PR.B to RCG.PR.B and GMP.PR.C to RCG.PR.C

Tuesday, November 24th, 2020

GMP Capital has announced:

that it has changed its corporate name to RF Capital Group Inc. (“RF Capital” or the “Company”) to align better with the Company’s multi-year transformation and new strategic focus in wealth management, including the recent consolidation of 100% of the ownership in Richardson Wealth under the Company. The Company’s shareholders approved the name change at a special meeting of shareholders held virtually on October 6, 2020.

The Company’s common and preferred shares will commence trading on the Toronto Stock Exchange under the new name, ticker symbols and new CUSIP/ISIN numbers, effective November 24, 2020. The Company’s new corporate website will be located at www.rfcapgroup.com.

The table below highlights the new ticker symbols, CUSIP and ISIN numbers for RF Capital’s common and preferred shares.

gmpimage_201124

No action is required by existing shareholders with respect to the name and ticker symbol changes.

GMP.PR.B is a FixedReset 5.50%+289, which commenced trading 2011-2-22 after being announced 2011-2-1. The notice of extension was reported on PrefBlog. The issue reset at 3.611% in 2016; there was a 22% conversion to GMP.PR.C. It is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

GMP.PR.C is a FloatingReset, Bills+289, that came into existence via a 22% conversion from GMP.PR.B in 2016.

DFN.PR.A To Get Bigger

Monday, November 23rd, 2020

Quadravest has announced:

Dividend 15 Split Corp. (the “Company”) is pleased to announce it will undertake an offering of Preferred Shares of the Company.

The offering will be led by National Bank Financial Inc.

The Preferred Shares will be offered at a price of $10.10 per Preferred Share to yield 5.45%.

The closing price on the TSX of the Preferred Shares on November 20, 2020 was $10.19.

Since inception of the Company, 200 consecutive dividends have been declared for the Preferred Shares. The aggregate dividends paid on the Preferred Shares have been $8.80 per share. All distributions to date have been made in tax advantage eligible Canadian dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies as follows:

Bank of Montreal Enbridge Inc. TC Energy
The Bank of Nova Scotia Manulife Financial Corp. TELUS Corporation
BCE Inc. National Bank of Canada Thomson Reuters Corp.
Canadian Imperial Bank of Commerce Royal Bank of Canada The Toronto-Dominion Bank
CI Financial Corp. Sun Life Financial Inc. TransAlta Corporation

The Company’s investment objectives are:

  • Preferred Shares:
    • to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the amount of 5.50% annually; and
    • on or about the termination date, currently December 1, 2024 (subject to further 5-year extensions thereafter and it has been extended in the past), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

The sales period of this overnight offering will end at 9:00 a.m. EST on November 24, 2020. The offering is expected to close on or about November 30, 2020 and is subject to certain closing conditions including approval by the TSX.

It’s very unusual to see Split Corporation preferred shares issued without attached Capital Units. Presumably this is being done to offset ATM sales of the Capital Units.

Update, 2020-11-24: They have further announced:

Dividend 15 Split Corp. (the “Company”) is pleased to announce it has completed the overnight offering of 1,000,000 Preferred Shares of the Company. Total gross proceeds of the offering were $10.1 million, bringing the Company’s net assets to approximately $894.6 million.

The offering was led by National Bank Financial Inc.

The sales period of the overnight offering has now ended.

The offering is expected to close on or about November 30, 2020 and is subject to certain closing conditions including approval by the TSX.

The Preferred Shares were offered at a price of $10.10 per Preferred Share to yield 5.45%.

The closing price on the TSX of the Preferred Shares on November 23, 2020 was $10.22.

FTN.PR.A : Asset Coverage Skyrockets on Reorg

Thursday, November 19th, 2020

Quadravest has announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce a reorganization that will provide for increased asset coverage and increased dividends for its Preferred shares and anticipated monthly distributions on its Class A shares.

In connection with the extension of the termination date of the Company until December 1, 2025, the Company’s Class A shares will consolidate such that each Class A shareholder will receive 0.40 Class A shares for each Class A share held. As at November 18, 2020, the pro forma NAV per unit of the Company after giving effect to this reorganization will be $17.88 ($13.15 pre-consolidated). The payment of monthly dividends to Class A shareholders at a rate of $1.20 per year are expected post-consolidation (with NAV per unit above $15).

As at the consolidation date, the resultant increase in the net asset value per Class A share will have the impact of increasing the asset coverage ratio for the Preferred shares. Based on the NAV per unit on November 18, 2020, the asset coverage ratio would increase from 132% to 179%. In addition, as previously announced on September 23, 2020, Preferred share dividends will increase from 5.5% to 6.75% annually effective December 1, 2020.

The aggregate intrinsic value of the Class A shareholders’ holdings will remain the same and as a result, the net asset value per Class A share will increase on a proportionate basis for each post-consolidation share on the consolidation date. In the event that the share consolidation would otherwise result in the issuance of fractional shares, no fractional Class A shares will be issued and the number of Class A shares each holder shall receive will be rounded down to the nearest whole number. The consolidation will be a non-taxable event. No action is required to be taken by Class A shareholders in connection with the consolidation.

The reorganization is required in order to maintain an equal number of Class A shares and Preferred Shares outstanding at all material times. More Preferred shares were tendered for retraction than Class A shares pursuant to the special retraction right offered to shareholders in connection with the extension of the termination date of the Company. Retracting shareholders will receive a retraction price based on the November 30, 2020 net asset value per unit.

It is expected that the Class A shares will trade on a post-consolidation basis at the opening of trading on or about December 17, 2020.

The impact of the Class A share consolidation will be reflected in the reported net asset value per unit as at
December 31, 2020.

The Company invests in a high quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers as follows: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, National Bank of Canada, Manulife Financial Corporation, Sun Life Financial, Great-West Lifeco, CI Financial Corp, Bank of America, Citigroup Inc., Goldman Sachs Group, JP Morgan Chase & Co. and Wells Fargo & Co.

The phrase:

the Company’s Class A shares will consolidate such that each Class A shareholder will receive 0.40 Class A shares for each Class A share held.

… is fascinating. The implication is that, at a minimum, 60% of the outstanding preferred shares were tendered for the special retraction. This is an interesting variant of the prisoners’ dilemma – it was entirely rational to tender to the special retraction due to low asset coverage and the fact that the shares were trading below par … but so many holders retracted that the remaining holders are laughing all the way to the bank, with investment-grade Asset Coverage, a dividend rate that was boosted to reduce redemptions and a market price of greater than par. Investing is a difficult game!

Assiduous Readers may be interested in reading cowboylutrell‘s comments on the issue on the September 17 post. And also read his follow-up prediction:

But instead it will be 6.75% for the first year of the new 5-year term only, and a minimum of 5.50% for years 2 to 5. And because of that, there likely won’t be enough enthusiasm from speculators to move the bid closer to $10.00 in the weeks ahead, so conservative holders likely won’t be able to sell their shares of FTN.PR.A on the market at or above $10.00 in the weeks ahead, and instead will massively surrender them for retraction.

RS.PR.A Strong on Excellent Volume

Thursday, November 19th, 2020

Middlefield Group has announced:

Middlefield Group, on behalf of Real Estate & E-Commerce Split Corp. (the “Company”), is pleased to announce the Company has completed its initial public offering of 1,613,887 class A shares and 1,613,887 preferred shares for total gross proceeds of $40 million. The class A and preferred shares are listed on the Toronto Stock Exchange under the symbols RS and RS.PR.A, respectively.

The Company will invest in a diversified, actively managed portfolio of dividend-paying securities of issuers operating in the real estate or related sectors, including real estate investment trusts, that the Advisor (as defined below) believes are well-positioned to benefit from low interest rates, the rapid adoption of e-commerce, the growth of data infrastructure as well as attractive valuations in various areas of the real estate sector.

The Company’s investment objectives for the:

  • Class A shares are to provide holders with:
    • non-cumulative monthly cash distributions; and
    • the opportunity for capital appreciation through exposure to the portfolio
  • Preferred shares are to:
    • provide holders with fixed cumulative preferential quarterly cash distributions; and
    • return the original issue price of $10.00 to holders upon maturity

The initial target distribution yield for the class A shares is 8% per annum based on the original subscription price (or $0.10 per month or $1.20 per annum).

The initial target distribution yield for the preferred shares is 5.25% per annum based on the original subscription price (or $0.13125 per quarter or $0.525 per annum).

Middlefield Capital Corporation (the “Advisor”) will provide investment management advice to the Company.

The syndicate of agents was co-led by CIBC Capital Markets and RBC Capital Markets, and includes BMO Capital Markets, Scotiabank, TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Industrial Alliance Securities, Manulife Securities Incorporated, Raymond James Ltd., Richardson GMP, Middlefield Capital Corporation, Echelon Wealth Partners Inc. and Mackie Research Capital Corporation.

For further information, please visit our website at www.middlefield.com or contact Nancy Tham or Michael Bury in our Sales and Marketing Department at 1.888.890.1868.

Highlights from the prospectus are:

Real Estate & E-Commerce Split Corp. (the “Company”) is a mutual fund established as a corporation under the laws of the Province of Ontario. The Company proposes to offer preferred shares (“Preferred Shares”) and class A shares (“Class A Shares”) at a price of $10.00 per Preferred Share and $15.00 per Class A Share (the “Offering”). Preferred Shares and Class A Shares are issued only on the basis that an equal number of Preferred Shares and Class A Shares will be outstanding at all material times.

The Company will invest in a diversified, actively managed portfolio (the “Portfolio”) of dividend-paying securities of issuers operating in the real estate or related sectors, including real estate investment trusts, that the Advisor (as defined below) believes are well-positioned to benefit from low interest rates, the rapid adoption of e-commerce, the growth of data infrastructure as well as attractive valuations in various areas of the real estate sector (“Real Estate & E-Commerce Issuers”). See “Investment Strategy.”

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders on December 31, 2025 (the “Maturity Date”), subject to extension for successive terms of up to five years as determined by the Company’s board of directors. See “Investment Objectives”. The quarterly cash distribution will be $0.13125 per Preferred Share ($0.525 per annum), representing a yield of 5.25% per annum on the issue price of $10.00 per Preferred Share until December 31, 2025. See “Distribution Policy”

The first distribution will be pro-rated to reflect the period from the Closing Date to December 31, 2020.

No distributions will be paid on the Class A Shares if (i) the distributions payable on the Preferred Shares are in arrears, or (ii) in respect of a cash distribution by the Company, the net asset value (“NAV” or “Net Asset Value”) per “Unit”, comprised of one Preferred Share and one Class A Share, would be less than $15.00 following the payment of such distributions.

The Preferred Shares have been provisionally rated Pfd-2 (low) by DBRS Limited.

The Preferred Shares will be redeemed by the Company on the Maturity Date, subject to extension for successive terms of up to five years as determined by the Board of Directors. The redemption price payable by the Company for a Preferred Share on that date will be equal to the lesser of (i) $10.00 plus any accrued and unpaid distributions thereon and (ii) the NAV of the Company on that date divided by the total number of Preferred Shares then outstanding.

Monthly: Preferred Shares may be surrendered at any time for retraction to Middlefield Capital Corporation (in such capacity, the “Registrar and Transfer Agent”), the Company’s registrar and transfer agent, but will be retracted only on the second last business day of a month (the “Retraction Date”). Preferred Shares surrendered for retraction by 5:00 p.m. (Toronto time) on or before the twentieth business day prior to the Retraction Date will be retracted on such Retraction Date and the holder will be paid on or before the last business day of the following month (the “Retraction Payment Date”).

Holders of Preferred Shares whose Preferred Shares are surrendered for retraction will be entitled to receive a retraction price per Preferred Share equal to 96% of the lesser of (i) the NAV per Unit determined as of such Retraction Date, less the cost to the Company of the purchase of a Class A Share for cancellation; and (ii) $10.00. For this purpose, the cost of the purchase of a Class A Share will include the purchase price of the Class A Share, and commission and such other costs, if any, related to the liquidation of any portion of the Portfolio to fund the purchase of the Class A Share.

On the Maturity Date and upon any subsequent maturity date as determined by the Board of Directors, a holder of Preferred Shares may retract such Preferred Shares. The Company will provide at least 60 days’ notice to holders of Preferred Shares of such right. The retraction price payable by the Company for a Preferred Share pursuant to the non-concurrent retraction right will be equal to the lesser of (i) $10.00 plus any accrued and unpaid distributions thereon and (ii) the NAV of the Company on that date divided by the total number of Preferred Shares then outstanding.

DBRS rates the shares Pfd-2(low):

DBRS Limited (DBRS Morningstar) finalized its provisional rating of Pfd-2 (low) assigned to the Preferred Shares issued by Real Estate & E-Commerce Split Corp. (the Company), managed by Middlefield Limited (the Manager). Middlefield Capital Corporation (the Investment Advisor) will provide investment advice to the Company.

The initial downside protection available to holders of the Preferred Shares is approximately 58% (after offering expenses). Downside protection available to the Preferred Shares consists of the net asset value (NAV) of the Class A Shares. The fixed distributions of dividends on the Preferred Shares will be funded from the dividends received on the securities in the Portfolio, which are expected to cover approximately 1.8 times the annual Preferred Shares distributions.

It’s very nice to see another issue qualifying for the SplitShares index! Vital statistics are:

RS.PR.A SplitShare YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-12-31
Maturity Price : 10.00
Evaluated at bid price : 10.10
Bid-YTW : 5.03 %

BCE.PR.R To Reset To 3.018%

Monday, November 16th, 2020

BCE Inc. has announced:

BCE Inc. will, on December 1, 2020, continue to have Cumulative Redeemable First Preferred Shares, Series R (“Series R Preferred Shares”) outstanding if, following the end of the conversion period on November 17, 2020, BCE Inc. determines that at least one million Series R Preferred Shares would remain outstanding. In such a case, as of December 1, 2020, the Series R Preferred Shares will pay, on a quarterly basis, as and when declared by the Board of Directors of BCE Inc., a fixed cash dividend for the following five years that will be based on a fixed rate equal to the product of: (a) the average of the yields to maturity compounded semiannually, determined on November 10, 2020 by two investment dealers selected by BCE
Inc., that would be carried by non-callable Government of Canada bonds with a 5-year maturity (the “Government of Canada Yield”), multiplied by (b) a percentage rate determined by BCE Inc. (the “Selected Percentage Rate”) for such period. The “Selected Percentage Rate” determined by BCE Inc. for such period is 600%. The “Government of Canada Yield” is 0.503%. Accordingly, the annual dividend rate applicable to the Series R Preferred Shares for the period of five years beginning on December 1, 2020 will be 3.018%.

This follows an earlier announcement (2020-10-15):

Holders of fixed-rate BCE Inc. Series R Preferred Shares have the right to convert all or part of their shares, effective on December 1, 2020, on a one-for-one basis into floating-rate Cumulative Redeemable First Preferred Shares, Series Q of BCE Inc. (the “Series Q Preferred Shares”). In order to convert their shares, holders must exercise their right of conversion during the conversion period which runs from October 17, 2020 until 5:00 p.m. (Eastern time) on November 17, 2020.

Should Series Q Preferred Shares be issued following the conversion on December 1, 2020 of Series R Preferred Shares, the Series Q Preferred Shares so issued will begin trading under the symbol BCE.PF.Q. This is not to be confused with BCE Inc.’s Cumulative Redeemable First Preferred Shares, Series AQ which currently trade under the symbol BCE.PR.Q. Should any Series R Preferred Shares remain outstanding after December 1, 2020, they will continue to trade under the symbol BCE.PR.R.

Series Q, if issued, will be a Ratchet Rate Preferred, which in current conditions may be expected to pay dividends at 100% of Canada Prime paid on par … although if the price should exceed $25, this percentage will be reduced, with a minimum of 50% of Canada Prime.

As explained in the article on such pairs (which are interconvertible on a set schedule) the expected prices of each element of the pair are related by the level of their expected dividends. Alternatively, the break-even dividend rate for the Ratchet Rate element of the pair can be determined given knowledge of the other three variables (price #1, price #2 and dividend #1). These break even dividend rates are plotted for each FixedFloater / RatchetRate pair in the following graph:

pl_201113_body_chart_7
Click for Big

The average breakeven prime for the BCE issues (seven pairs) currently trading is 3.07% (the outlying point is BAM.PR.G / BAM.PR.E, both of which trade with miniscule volumes). If we assume that the new pair, if created, will trade with the same relative valuation, the current bid of 13.41 for BCE.PR.R will imply a bid of 13.46 for BCE.PF.Q.

Therefore, I make no recommendation regarding whether or not to convert; holders should determine their preference according to their own financial position and their own views regarding the probable level of Canada Prime over the next five years.

Those who wish to convert must act quickly! The deadline is 5pm on November 17 and brokers’ internal deadlines could well occur before then – although they will generally take instructions on a ‘best efforts’ basis if you grovel in a sufficiently entertaining fashion.

ALB.PR.C To Mature On Schedule, 2021-2-26

Thursday, November 12th, 2020

Scotia Managed Companies has announced (on October 23):

today that all of its issued and outstanding Class A Capital Shares (“Capital Shares”) and Class B Preferred Shares, Series 2 (“Preferred Shares”) will be redeemed by the Company in accordance with their terms on February 26, 2021 and that the Company will wind up and terminate as soon as practicable after such date.

The redemption price for each Preferred Share will be an amount equal to the Series 2 Preferred Share Redemption Price (as defined in the provisions attaching to the Preferred Shares). The Series 2 Preferred Share Redemption Price will equal the lesser of (i) $25.67; and (ii) Unit Value (as defined in the provisions attaching to the Preferred Shares). The redemption price (the “Capital Share Redemption Price”) for every two Capital Shares redeemed will be an amount equal to the amount, if any, by which the Unit Value exceeds $25.67.

Holders of Capital Shares who wish to receive a redemption payment equal to the Capital Share Redemption Price in portfolio shares (rounded down to the nearest whole share) rather than cash must give notice to this effect to the Company and tender $25.67 for every two Capital Shares redeemed to the Company no later than January 29, 2021. Dealers and CDS may have deadlines earlier than January 29, 2021 for receiving such notice. Accordingly, a holder who wishes to receive portfolio shares on the final redemption should contact their dealer sufficiently in advance of January 29, 2021 to ensure that their dealer is provided sufficient time to deliver such notice to CDS before the deadline set by CDS for receiving those notices. Holders of Capital Shares who do not give the required 20 business days’ notice will be deemed to have chosen to be paid in cash.

The payment of the amount due to holders of the redeemed Capital Shares and Preferred Shares will be made by the Company on February 26, 2021.

The Capital Shares and Preferred Shares will be delisted from the Toronto Stock Exchange on or about February 26, 2021.

Allbanc Split Corp. II is a mutual fund corporation created to hold a portfolio of publicly listed common shares of selected Canadian chartered banks. Capital Shares and Preferred Shares of Allbanc Split Corp. II are listed for trading on The Toronto Stock Exchange under the symbols ALB and ALB.PR.C respectively.

ALB.PR.C is a SplitShare, ~4.75%, maturing 2021-2-28, that commenced trading 2016-2-29. It is tracked by HIMIPref™ but relegated to the Scraps – SplitShare subindex on volume concerns.

RY.PR.M : No Conversion To FloatingReset

Thursday, November 12th, 2020

Royal Bank of Canada has announced:

that during the conversion notice period, which ran from October 26, 2020 to November 9, 2020, 52,464 Non-Viability Contingent Capital (NVCC) Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BF (the “Series BF shares”) were tendered for conversion, on a one-for-one basis, into NVCC Non-Cumulative Floating Rate First Preferred Shares, Series BG (the “Series BG shares”). As per the conditions set out in the prospectus supplement dated March 9, 2015, since less than 1,000,000 Series BG shares would be outstanding after November 24, 2020, holders of Series BF shares will not be entitled to convert their shares into Series BG shares. As a result, Series BG shares will not be issued at this time and holders of Series BF shares will retain their shares.

On November 24, 2020, Royal Bank of Canada will have 12,000,000 Series BF shares issued and outstanding. The Series BF shares are currently listed on the Toronto Stock Exchange under the symbol RY.PR.M.

RY.PR.M is a FixedReset, 3.60%+262, NVCC-compliant, that commenced trading 2015-3-15 after being announced 2015-3-5. The company announced extension earlier in October. The issue will reset to 3.00% effective 2020-11-24. The issue is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.