PrefBlog

Innergex Renewable Energy Inc. has announced:

the completion of its previously announced acquisition by La Caisse by way of a plan of arrangement under the provisions of the Canada Business Corporations Act (the “Arrangement”).

Pursuant to the terms of the Arrangement, La Caisse has acquired all of the issued and outstanding common shares of Innergex (other than those held by La Caisse and certain members of senior management rolling over (the “Rollover Shareholders”)) for a price of $13.75 per common share in cash. All of the issued and outstanding preferred shares Series A and Series C of Innergex were also acquired by La Caisse for $25.00 per preferred share in cash (plus all accrued and unpaid dividends and, in the case of the Series A preferred shares, an amount in cash per Series A preferred share equal to the dividends that would have been payable in respect of such share until January 15, 2026, which is the next available redemption date). All of the outstanding 4.65% subordinated unsecured convertible debentures of Innergex have been repaid in full upon completion of the Arrangement, including as to principal and accrued and unpaid interest thereon.

As previously announced, La Caisse has syndicated approximately 20% of its invested capital to bring in like-minded investors who share its vision for the next chapter of Innergex’s growth.

As part of the Arrangement, certain members of senior management of Innergex, including Mr. Michel Letellier, Innergex’s President and Chief Executive Officer, and Mr. Jean Trudel, Innergex’s Chief Financial Officer, have rolled over a portion of their common shares and reinvested in the privatized Innergex.

La Caisse has caused to be delivered to Computershare Investor Services Inc. (“Computershare”), the depositary for the Arrangement, sufficient funds to enable it to make payments to Innergex shareholders (other than the Rollover Shareholders) pursuant to the terms of the Arrangement. In accordance with the Arrangement, payment will be made by Computershare to Innergex shareholders (other than the Rollover Shareholders) as soon as practicable following the date hereof.

Letters of transmittal have been mailed to registered shareholders and are also available under the profile of Innergex at www.sedarplus.ca. The letters of transmittal explain how registered shareholders can deposit and obtain payment for their shares. Registered shareholders must return their duly completed letters of transmittal to Computershare in order to receive the consideration to which they are entitled for their shares.

As a result of the completion of the Arrangement, it is expected that the common shares, preferred shares Series A and Series C and the 4.65% subordinated unsecured convertible debentures of Innergex will be delisted from the Toronto Stock Exchange on or about July 22, 2025. Innergex has applied to cease to be a reporting issuer under the securities legislation of each province of Canada where Innergex is currently a reporting issuer.

La Caisse is a trademark owned by Caisse de dépôt et placement du Québec.

INE was issued as a FixedReset 5.00%+279 that commenced trading 2010-9-14 after being announced 2010-8-23. Notice of exension was provided in December, 2015 and the issue reset to 3.608%. I recommended against conversion and none occurred. The issue reset to 3.244% in early 2021.

INE.PR.C is a Straight Perpetual, 5.75%, that commenced trading 2012-12-11 after being announced 2012-11-21.

Bank of Montreal has announced (on 2025-7-8):

its intention to redeem all of its 8,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 33 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 33”) (TSX: BMO.PR.Y) for an aggregate total of $200 million on August 25, 2025. The redemption has been approved by the Office of the Superintendent of Financial Institutions.

The Preferred Shares Series 33 are redeemable at the Bank’s option on August 25, 2025 (the “Redemption Date”) at a redemption price of $25.00 per share. Payment of the redemption price will be made by the Bank on the Redemption Date.

Separately from the payment of the redemption price, the final quarterly dividend of $0.190875 per share for the Preferred Shares Series 33 announced by the Bank on May 28, 2025 will be paid in the usual manner on August 25, 2025, to shareholders of record on July 30, 2025.

Notice will be delivered to holders of the Preferred Shares Series 33 in accordance with the terms thereof.

BMO.PR.Y was issued as a FixedReset, 3.80%+271, that commenced trading 2015-6-5 after being announced 2015-5-27. Notice of extension was published 2020-6-29 and the issue reset to 3.054%. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

Thanks to Assiduous Reader niagara for bringing this to my attention!

Emera Incorporated has announced:

the applicable dividend rates for its Cumulative Rate Reset First Preferred Shares, Series A (the “Series A Shares”) and Cumulative Floating Rate First Preferred Shares, Series B (the “Series B Shares”), in each case, payable if, as and when declared by the Board of Directors of the Company:

4.951% per annum on the Series A Shares ($0.3094 per Series A Share per quarter), being equal to the sum of the Government of Canada bond yield as at July 16, 2025, plus 1.84%, payable quarterly on the 15 th of February, May, August and November of each year during the five-year period commencing on August 15, 2025 and ending on (and inclusive of) August 14, 2030; and
4.542% on the Series B Shares for the three-month period commencing on August 15, 2025 and ending on (and inclusive of) November 14, 2025 ($0.2862 per Series B Share for the quarter), being equal to the sum of the three-month Government of Canada treasury bill yield rate as at July 16, 2025, plus 1.84% (calculated on the basis of the actual number of days elapsed during the quarter divided by 365), payable on the 15 th of November 2025. The quarterly floating dividend rate will be reset every quarter.
Subject to certain conditions set out in the prospectus supplement of the Company dated May 26, 2010, to the short form base shelf prospectus of the Company dated May 19, 2010 (collectively, the “Prospectus”), on August 15, 2025 (the “Conversion Date”):

(a) the holders of Series A Shares have the right, at their option:

to retain any or all of their Series A Shares and continue to receive a fixed rate quarterly dividend; or
to convert any or all of their Series A Shares, on a one-for-one basis, into Series B Shares and receive a floating rate quarterly dividend, and
(b) the holders of Series B Shares have the right, at their option:

to retain any or all of their Series B Shares and continue to receive a floating rate quarterly dividend; or
to convert any or all of their Series B Shares, on a one-for-one basis, into Series A Shares and receive a fixed rate quarterly dividend.
The conversion of Series A Shares is subject to the conditions that: (i) if the Company determines, after having taken into account all shares tendered for conversion by holders of Series A Shares that there would remain outstanding on the Conversion Date less than 1,000,000 Series A Shares, all remaining Series A Shares will automatically be converted into Series B Shares on a one-for-one basis on the Conversion Date, and (ii) alternatively, if the Company determines that, after conversion, there would remain outstanding on the Conversion Date less than 1,000,000 Series B Shares, then no Series A Shares will be converted into Series B Shares.

The conversion of Series B Shares is subject to the conditions that: (i) if the Company determines, after having taken into account all shares tendered for conversion by holders of Series B Shares that there would remain outstanding on the Conversion Date less than 1,000,000 Series B Shares, all remaining Series B Shares will automatically be converted into Series A Shares on a one-for-one basis on the Conversion Date, and (ii) alternatively, if the Company determines that, after conversion, there would remain outstanding on the Conversion Date less than 1,000,000 Series A Shares, then no Series B Shares will be converted into Series A Shares.

In either case, the Company will give written notice to that effect to the holders of Series A Shares and the holders of Series B Shares at least seven days prior to the Conversion Date, subject to the terms set out in the Prospectus.

Holders of Series A Shares or Series B Shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from July 16, 2025, until 5:00 p.m. (EDT) on July 31, 2025. Notices received after this deadline will not be valid. As such, it is recommended that this be done well in advance of the deadline in order to provide their broker or other nominee with adequate time to complete the necessary steps.

Holders of Series A Shares and Series B Shares will have the opportunity to convert their shares again on August 15, 2030, and every five years thereafter as long as the shares remain outstanding. For more information on the terms of, and risks associated with, an investment in Series A Shares and Series B Shares, please see the Company’s Prospectus, which is available on SEDAR+ at www.sedarplus.ca.

EMA.PR.A was issued as a FixedReset, 4.40%+184, that commenced trading 2010-6-2 after being announced 2010-5-25. Extension was announced in 2015 and a reset to 2.555% announced. I receommended against conversion, but there was a 36% conversion to EMA.PR.B anyway. Notice of extension was provided on 2020-7-9. EMA.PR.A reset at 2.182% effective 2020-8-15 and there was a 17% net conversion to the FixedReset.

EMA.PR.B is a FloatingReset, Bills+184, that became extant in 2015 via a 36% conversion from EMA.PR.A.

Thanks to Assiduous Reader PL for bringing this to my attention!