LB.PR.H : No Conversion to FloatingReset

Laurentian Bank of Canada has announced:

that none of its outstanding Non-Cumulative Class A Preferred Shares, Series 13 (the “Preferred Shares Series 13”) will be converted on June 17, 2019, being the first business day following the conversion date of June 15, 2019, into Non-Cumulative Class A Preferred Shares, Series 14 of the Bank (the “Preferred Shares Series 14”).

During the conversion period which ended on May 31, 2019, 177,715 Preferred Shares Series 13 were tendered for conversion into Preferred Shares Series 14, which is less than the minimum 1,000,000 required to give effect to the conversion, as described in the prospectus supplement dated March 27, 2014 relating to the issuance of the Preferred Shares Series 13. As a result, no Preferred Shares Series 14 will be issued on June 17, 2019 and holders of Preferred Shares Series 13 will retain their shares.

The Preferred Shares Series 13 are currently listed on the Toronto Stock Exchange under the symbol LB.PR.H. As previously announced on May 16, 2019, the dividend rate for the five-year period commencing on June 15, 2019, and ending on June 14, 2024, will be 4.123% per annum.

LB.PR.H is a NVCC-compliant FixedReset, 4.30%+255, that commenced trading 2014-4-3 after being announced 2014-3-25. The extension was announced 2019-5-7. LB.PR.H will reset At 4.123% effective June 15, 2019. I made no recommendation regarding conversion.

This issue is tracked by HIMIPref™ but relegated to the Scraps FixedReset-Discount subindex on credit concerns.

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