PWF.PR.T : No Conversion to FloatingReset

Power Financial Corporation has announced (on January 17):

that none of its outstanding 8,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series T (the “Series T shares”) will be converted on January 31, 2019 into Non-Cumulative Floating Rate First Preferred Shares, Series U (the “Series U shares”) of Power Financial. During the conversion notice period which ran from January 2, 2019 to January 16, 2019, only 62,130 Series T shares were tendered for conversion into Series U shares. As per the conditions set out in the prospectus supplement dated December 4, 2013 relating to the issuance of Series T shares, since there would be less than 1,000,000 Series U shares outstanding on January 31, 2019, after having taken into account all Series T shares tendered for conversion into Series U shares, holders of Series T shares who tendered their shares for conversion will not be entitled to convert their shares into Series U shares. As a result, Series U shares will not be issued at this time.

The Series T shares are currently listed on the Toronto Stock Exchange under the symbol PWF.PR.T.

It will be recalled that PWF.PR.T will reset at 4.215% effective January 31, 2019.

PWF.PR.T is a FixedReset, 4.20%+237, that commenced trading 2013-12-11 after being announced 2013-12-2. It is tracked by HIMIPref™ and is assigned to the FixedReset Discount subindex.

I recommended against conversion.

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