CU.PR.C : No Conversion to FloatingReset

Canadian Utilities Limited has announced:

that after having taken into account all election notices following the conversion deadline for the Cumulative Redeemable Second Preferred Shares Series Y (“Series Y Preferred Shares”) tendered for conversion into Cumulative Redeemable Second Preferred Shares Series Z (“Series Z Preferred Shares”), the holders of Series Y Preferred Shares are not entitled to convert their Series Y Preferred Shares into Series Z Preferred Shares. There were approximately 508,379 Series Y Preferred Shares tendered for conversion, which is less than the two million shares required to give effect to conversions into Series Z Preferred Shares.

The Series Y Preferred Shares will continue to pay on a quarterly basis, for the five-year period from and including June 1, 2017 to but excluding June 1, 2022, as and when declared by the Board of Directors of Canadian Utilities Limited, a fixed dividend based on an annual dividend rate of 3.40%.

Assiduous Readers will remember that I recommended against conversion after the reset to 3.40% for CU.PR.C.

So CU.PR.C is now a FixedReset, 3.4O%+240. It is tracked by HIMIPref™ and is assigned to the FixedReset subindex.

Leave a Reply

You must be logged in to post a comment.