FTS.PR.K : Reset Rate To Be Reset

The lawyers have an old slogan – False in one thing, false in everything. My credo is ‘Sloppy in one thing, sloppy in everything’.

It will be recalled that Fortis could not be bothered to announce the FTS.PR.K reset rate and that when their figure did come to light it was discovered that there was a discrepancy between the GOC-5 rate they used and that of other companies resetting issues on the same day. The rather vital news regarding conversion – of great interest to those who value liquidity – was also considered a topic not fit for public discussion.

In the face of their continuing refusal to answer a basic question regarding the GOC-5 rate used to determine the reset rate, I finally sent the following eMail to them early on the afternoon of March 18:

Please advise when I may expect an answer to this question, as I do not wish to have to write to the Board of Directors.


I have finally received an answer:

Good afternoon,

Thank you for your patience. It appears that our team used information as of 10:45 am rather than 10 am.

We plan to bring this issue to our Board on March 31, 2019 for correction. We are targeting to issue a press release with the corrected amounts in early April. Sorry for any inconvenience this may have caused.

All the best,

Sloppy in one thing, sloppy in everything.

FTS.PR.K is a FixedReset, 4.00%+205, that commenced trading 2013-7-13 after being announced 2013-7-9. It was incorrectly claimed to reset to 3.925% effective 2019-3-1, although the company would prefer you didn’t know that. I recommended against conversion. The reset rate is not yet known, over two weeks after it has become effective. The issue is tracked by HIMIPref™ but relegated to the Scraps – FixedResets (Discount) subindex on credit concerns.

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