Brookfield Renewable Energy Partners L.P. has announced:
that it has determined the fixed dividend rate on Brookfield Renewable Power Preferred Equity Inc.’s Class A Preference Shares, Series 1 (“Series 1 Shares”) (TSX: BRF.PR.A) for the five years commencing May 1, 2015 and ending April 30, 2020. If declared, the fixed quarterly dividends on the Series 1 Shares during that period will be paid at an annual rate of 3.355% ($0.2096875 per share per quarter).
Holders of Series 1 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on April 15, 2015, to convert all or part of their Series 1 Shares, on a one-for-one basis, into Class A Preference Shares, Series 2 (the “Series 2 Shares”), effective April 30, 2015.
The quarterly floating rate dividends on the Series 2 Shares will be paid at an annual rate, calculated for each quarter, of 2.62% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the May 1, 2015 to July 31, 2015 dividend period for the Series 2 Shares will be 0.793468% (3.148% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.198367 per share, payable on July 31, 2015.
Holders of Series 1 Shares are not required to elect to convert all or any part of their Series 1 Shares into Series 2 Shares.
As provided in the share conditions of the Series 1 Shares, (i) if Brookfield Renewable determines that there would be fewer than 1,000,000 Series 1 Shares outstanding after April 30, 2015, all remaining Series 1 Shares will be automatically converted into Series 2 Shares on a one-for-one basis effective April 30, 2015; and (ii) if Brookfield Renewable determines that there would be fewer than 1,000,000 Series 2 Shares outstanding after April 30, 2015, no Series 1 Shares will be permitted to be converted into Series 2 Shares. There are currently 10,000,000 Series 1 Shares outstanding.
The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 2 Shares effective upon conversion. Listing of the Series 2 Shares is subject to Brookfield Renewable fulfilling all the listing requirements of the TSX and, upon approval, the Series 2 Shares will be listed on the TSX under the trading symbol “BRF.PR.B”.
BRF.PR.A was issued as a FixedReset, 5.25%+262, closing 2010-3-10 after being announced 2010-2-18. The new rate of 3.355% is thus a horrific 36% cut in the dividend.
As stated, the deadline for notification of the company of intent to convert is 5:00 p.m. (Toronto time) on April 15, 2015, but brokers will have earlier internal deadlines. I intend to post on April 10 regarding my recommendation on conversion.
BRF.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns. BRF.PR.B, if it comes into existence as a FloatingReset, will also be tracked.
This entry was posted on Wednesday, April 1st, 2015 at 11:19 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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BRF.PR.A To Reset At 3.355%
Brookfield Renewable Energy Partners L.P. has announced:
BRF.PR.A was issued as a FixedReset, 5.25%+262, closing 2010-3-10 after being announced 2010-2-18. The new rate of 3.355% is thus a horrific 36% cut in the dividend.
As stated, the deadline for notification of the company of intent to convert is 5:00 p.m. (Toronto time) on April 15, 2015, but brokers will have earlier internal deadlines. I intend to post on April 10 regarding my recommendation on conversion.
BRF.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns. BRF.PR.B, if it comes into existence as a FloatingReset, will also be tracked.
This entry was posted on Wednesday, April 1st, 2015 at 11:19 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.