Innergex Renewable Energy Inc. has announced:
the applicable dividend rates for its Cumulative Rate Reset Preferred Shares, Series A (“Series A shares”) and Cumulative Floating Rate Preferred Shares, Series B (“Series B shares”).
With respect to any Series A shares that remain outstanding after January 15, 2016, commencing as of such date, the holders thereof will be entitled to receive fixed cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 15th day (or, if such day is not a Business Day, the immediately following Business Day) of January, April, July and October in each year from and including January 15, 2016 to, but excluding, January 15, 2021. The dividend rate for the five-year period commencing on January 15, 2016 to but excluding January 15, 2021 will be 3.608% per annum or $0.2255 per share per quarter, being equal to the sum of the Government of Canada Yield (as the term is defined in the Prospectus referred to below) on December 16, 2015 plus 2.79%.
With respect to any Series B shares that may be issued on January 15, 2016, the holders thereof will be entitled to receive floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 15th day (or, if such day is not a Business Day, the immediately following Business Day) of January, April, July and October in each year (the “Quarterly Commencement Date”), in the annual amount per Series B Share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00. The Floating Quarterly Dividend Rate from and including January 15, 2016 to, but excluding, April 15, 2016, and thereafter the period from and including the day immediately following the end of the immediately preceding Quarterly Floating Rate Period to, but excluding, the next succeeding Quarterly Commencement Date (the “Quarterly Floating Rate Period”) will be equal to the sum of the T-Bill Rate (as the term is defined in the Prospectus referred to below) plus 2.79% per annum (calculated on the basis of the actual number of days in the applicable Quarterly Floating Rate Period divided by 365) determined on the 30th day prior to the first day of the applicable Quarterly Floating Rate Period. The dividend rate for the Quarterly Floating Rate Period commencing on January 15, 2016 to but excluding April 15, 2016 will be equal to 3.262% per annum or $0.203316 per share as determined in accordance with the terms of the Series B shares.
Beneficial owners of Series A shares who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is 5:00 p.m. (Montreal Time) on Thursday, December 31, 2015.
The extension of INE.PR.A was previously reported on PrefBlog.
INE.PR.A is a FixedReset, 5.00%+279, which commenced trading 2010-9-14 after being announced 2010-8-23. The new rate of 3.608% thus represents a 28% cut in dividend.
As noted in the Press Release, holders have until 5:00 p.m. (Montreal Time) on Thursday, December 31, 2015, to notify the company of a desire to convert to the FloatingReset Series B. Brokerage deadlines will be earlier; missing the deadline at the brokerage probably means you’re going to have to grovel to get them to try to get the instruction to the company in time and in such a case they will do it only on a ‘best efforts’ basis. So ensure you know well in advance – by which I mean ‘right now’ – just when your brokerage’s internal deadline is.
I will make a recommendation December 24 based on the theory of Preferred Pairs, for which a calculator is available. Given recent market behaviour, it is highly likely that I will recommend holding INE.PR.A and not to convert, but that won’t be final until Christmas Eve!
This entry was posted on Monday, December 21st, 2015 at 11:52 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.
INE.PR.A To Reset at 3.608%
Innergex Renewable Energy Inc. has announced:
The extension of INE.PR.A was previously reported on PrefBlog.
INE.PR.A is a FixedReset, 5.00%+279, which commenced trading 2010-9-14 after being announced 2010-8-23. The new rate of 3.608% thus represents a 28% cut in dividend.
As noted in the Press Release, holders have until 5:00 p.m. (Montreal Time) on Thursday, December 31, 2015, to notify the company of a desire to convert to the FloatingReset Series B. Brokerage deadlines will be earlier; missing the deadline at the brokerage probably means you’re going to have to grovel to get them to try to get the instruction to the company in time and in such a case they will do it only on a ‘best efforts’ basis. So ensure you know well in advance – by which I mean ‘right now’ – just when your brokerage’s internal deadline is.
I will make a recommendation December 24 based on the theory of Preferred Pairs, for which a calculator is available. Given recent market behaviour, it is highly likely that I will recommend holding INE.PR.A and not to convert, but that won’t be final until Christmas Eve!
This entry was posted on Monday, December 21st, 2015 at 11:52 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.