Category: Issue Comments

Brompton Group has announced:

Brompton Energy Split Corp. (the “Fund”) is pleased to announce it is undertaking a treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively) (the “Offering”).

The sales period for this offering is expected to end on Thursday, May 14, 2026. The offering is expected to close on or about May 22, 2026 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The Class A Shares will be offered at a price of $7.95 per Class A Share for a distribution rate of 15.1% on the issue price.(1)(2) The Preferred Shares will be offered at a price of $10.25 per Preferred Share to yield 7.1%.(2) The closing price on the TSX for each of the Class A Shares and the Preferred Shares on May 12, 2026 were $8.09 and $10.30, respectively. The offering is being led by
RBC Capital Markets.

The investment objectives for the Class A Shares are to provide holders with regular monthly non-cumulative cash distributions and to provide holders of Class A Shares with the opportunity for growth in net asset value per Class A Share. Over the past 3 years, the Class A Share has generated a 37.1% per annum return.(2)

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, in the amount of $0.18125 per Preferred Share (7.25% per annum on the original $10.00 issue price), and to return the original issue price to holders of Preferred Shares on March 30, 2027. Over the past 3 years, the Preferred Share has generated an 8.0% per annum return.(2) Purchasers of Preferred Shares in this Offering will be eligible to receive the full June 2026 quarterly dividend of $0.18125 per Preferred Share when the dividend is declared.

The Fund invests in an actively managed Portfolio consisting primarily of equity securities of dividend-paying (at the time of investment) global energy issuers with a market capitalization of at least $2 billion (at the time of investment) which may include companies operating in energy subsectors and related industries such as oil and gas exploration and production, equipment, services, pipelines, transportation, infrastructure, utilities, among others. The Fund may also invest up to 25% of the value of the Portfolio, as measured at the time of investment, in equity securities of other global natural resource issuers which include companies that own, explore, mine, process or develop natural resource commodities or supply goods and services to those companies, including directly or indirectly through exchange-traded funds, including exchange traded funds managed by Brompton Funds Limited, the manager of the Fund.

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

Canadian Utilities Limited has announced:

CU Inc. announced today that it has notified the registered shareholder of its Cumulative Redeemable Preferred Shares Series 4 (“Series 4 Preferred Shares”) of a conversion privilege and applicable dividend rates. As a result, subject to certain conditions, the holders of Series 4 Preferred Shares will have the right to choose one of the following options with regard to their shares:

To retain any or all of their Series 4 Preferred Shares and continue to receive a fixed rate quarterly dividend; or
To convert, on a one-for-one basis, any or all of their Series 4 Preferred Shares into Cumulative Redeemable Preferred Shares Series 5 (“Series 5 Preferred Shares”) of CU Inc. and receive a floating rate quarterly dividend.
Effective June 1, 2026, the annual dividend rate for the Series 4 Preferred Shares is set at 4.573% for the five-year period from and including June 1, 2026 to but excluding June 1, 2031 and the Series 5 Preferred Shares floating quarterly dividend rate for the three-month period commencing June 1, 2026 to but excluding September 1, 2026 is set at an annual dividend rate of 3.646%. The dividend rate for the Series 5 Preferred Shares will be reset each quarter. Both rates were calculated according to the terms described in the short form prospectus of CU Inc. dated November 24, 2010.

Beneficial owners of Series 4 Preferred Shares who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is 3 p.m. (Calgary time) / 5 p.m. (Toronto time) on May 19, 2026. Any 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 the broker or other nominee with time to complete the necessary steps.

The foregoing conversions are subject to the conditions that: (i) if CU Inc. determines that there would be less than 1,000,000 Series 4 Preferred Shares outstanding on June 1, 2026, then all remaining Series 4 Preferred Shares will automatically be converted into Series 5 Preferred Shares on June 1, 2026, and (ii) alternatively, if CU Inc. determines that there would be less than 1,000,000 Series 5 Preferred Shares outstanding on June 1, 2026 after giving effect to conversion notices received, no Series 4 Preferred Shares will be converted into Series 5 Preferred Shares. If either of these scenarios occurs, CU Inc. will issue a news release to that effect on or before May 25, 2026.

Holders of the Series 4 Preferred Shares and the Series 5 Preferred Shares will have the opportunity to convert their shares again on June 1, 2031, 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, the Series 4 Preferred Shares and the Series 5 Preferred Shares, please see CU Inc.’s short form prospectus dated November 24, 2010, which can be found under CU Inc.’s profile on SEDAR at www.sedarplus.ca.

CU Inc. is a wholly-owned subsidiary of Canadian Utilities Limited, an ATCO Company. CU Inc. is an Alberta-based corporation with approximately 3,600 employees and assets of $20 billion comprised of rate-regulated utility operations in electricity and natural gas distribution and transmission. More information about CU Inc. can be found on the Canadian Utilities Limited website at www.canadianutilities.com.

CIU.PR.C was issued as a 3.80%+136 FixedReset that commenced trading 2010-12-2 after being announced 2010-11-16. In 2016 it reset to 2.24% and there was no conversion to FloatingReset. In 2021 the issue reset to 2.29% and there was no conversion to the FloatingReset.

Thanks to Assiduous Readers earlyriser and HS for bringing this to my attention!

DBRS has announced that it:

changed the trends on Algonquin Power & Utilities Corp’s (APUC or the Company) credit ratings to Stable from Positive. Concurrently, Morningstar DBRS also confirmed APUC’s Issuer Rating at BBB and the credit rating on the Company’s Preferred Shares at Pfd-3.

KEY CREDIT RATING CONSIDERATIONS
APUC’s credit ratings are primarily based on the strength and stability of APUC’s subsidiary, Liberty Utilities Finance GP1 (LUF; rated BBB (high) with a Stable trend). LUF’s credit ratings are in turn based on the credit profile of Liberty Utilities Co. (LUCO), a fully regulated and diversified utility service provider. Morningstar DBRS based the credit rating confirmation on the strength and stability of LUCO’s business risk profile as a fully regulated and diversified utility service provider. LUCO’s business risk profile remained stable in 2025, underpinned by its (1) low-risk regulated asset base with reasonable regulatory frameworks across multiple jurisdictions and (2) geographically diversified portfolio with a reasonably sized customer base and large and growing rate base. The Company’s credit rating also incorporates the structural subordination of APUC’s debt to the debt of its subsidiaries.

The change in trends to Stable from Positive is concurrent with Morningstar DBRS’ credit rating actions on LUF. LUF’s capital investment plan between 2026 and 2028 is expected to require the issuance of additional debt such that its cash flow-to-debt ratio will remain less than the upgrade threshold of 15.0% over the forecast period. Additionally, upcoming maturities of $1.15 billion at APUC will likely be refinanced at LUCO. Nevertheless, Morningstar DBRS expects LUF’s cash flow-to-debt ratio to average around 12.0% over the forecast period, which is considered strong for the BBB (high) credit rating category, with adequate headroom to absorb any weakness.

There were no significant changes nor material adverse regulatory decisions in 2025 and year-to-date 2026 that affected LUCO’s credit profile. The Company achieved rate case settlements at various utilities including Empire District Electric Company; California–Liberty Utilities (CalPeco Electric) LLC; and New England Gas, which is expected to drive growth in earnings. The Company was also able to lower its operating expenses in 2025 through cost control measures and improve earned return of equity to 6.8% in 2025 (compared with 2024 at 5.5%).

CREDIT RATING DRIVERS
Morningstar DBRS could consider an upgrade if LUF gets upgraded and APUC maintains its financial risk profile. Conversely, APUC’s credit ratings could be downgraded if LUF’s credit ratings are downgraded or if APUC’s credit metrics weaken materially.

EARNINGS OUTLOOK
Morningstar DBRS expects APUC’s earnings to stabilize and be more predictable after the Company’s transition to a pure and fully regulated player. Morningstar DBRS also expects lower consolidated revenues from the sale of APUC’s renewable business (other than hydro) in 2025, offset by higher EBITDA margins driven by lower operating costs. Over time, Morningstar DBRS anticipates that APUC’s regulated businesses margins will strengthen as the Company continues to benefit from the implementation of higher approved rates and rate base year over year.

FINANCIAL OUTLOOK
APUC’s financial risk profile at year-end 2025 was strong, with actual debt-to-capital ratio less than the average of regulator-approved capital structure at the various regulated utilities. Morningstar DBRS expects cash flow from operations in 2026 to be modestly higher than in 2025 because of higher earnings. However, Morningstar DBRS expects the Company’s key credit metrics to modestly weaken as it raises additional debt to fund its capital investment plan over the next three years. Nevertheless, Morningstar DBRS expects the Company’s cash flow-to-debt ratio to average around 11.0% over the forecast period and stay supportive of the credit rating.

CREDIT RATING RATIONALE
APUC’s BBB Issuer Rating incorporates the business risk profile of its operating subsidiary, and APUC’s consolidated financial metrics, and the structural subordination of APUC to its operating subsidiary.

Comprehensive Business Risk Assessment (CBRA)
APUC’s CBRA of A/AL reflects its low business risk profile as a pure-play, distribution, transmission and generation business operating under an established and generally reasonable regulatory framework across multiple countries. The Company benefits from stable customer demand from its operating subsidiaries and minimal exposure to commodity or volume risk.

Comprehensive Financial Risk Assessment (CFRA)
APUC’s CFRA of AL/BBBH reflects its strong key credit metrics supported by reasonable leverage and adequate access to liquidity.

Intrinsic Assessment (IA)
The IA of BBBH is at the lower end of the IA range and is limited by LUF’s credit rating, given that APUC’s debt is structurally subordinate to debt at LUF. The IA assignment considers peer comparisons, among other factors.

Additional Considerations
APUC’s credit rating includes a negative adjustment for its structural subordination as the parent to its operating subsidiary.

Affected issues are AQN.PR.A and AQN.PR.D .

Mulvihill Capital Management Inc. has announced:

Premium Income Corporation (the “Fund”) is pleased to announce its intention to complete a share split of its class A shares (the “Share Split) due to the Fund’s strong performance. The holders of class A shares of record on the close of business on May 1, 2026 will receive 10 additional class A shares for every 100 Class A shares held, pursuant to the Share Split. The Share Split is subject to the approval by the Toronto Stock Exchange (the “TSX”).

As a result of the Share Split, the total dollar amount of distributions to be paid to the holders of Class A shares is expected to increase by approximately 10%.

The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on May 1, 2026. No fractional Class A shares will be issued, and the number of Class A shares each holder shall receive will be rounded down to the nearest whole number. The Share Split is a non-taxable event. The Share Split will be reflected in the net asset value per Class A share as of May 7, 2026.

For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172, email at info@mulvihill.com or visit www.mulvihill.com

PIC.PR.A was last mentioned on PrefBlog in 2024, when there was a big retraction.

PIC.PR.A has a par value of 15.00, with a total NAVPU (including the Capital Units, which will shortly be split) of 27.39 as of 2026-04-30.

Manulife Financial Corporation has announced:

that it does not intend to exercise its right to redeem all or any of its currently outstanding 6,537,903 Non-cumulative Rate Reset Class 1 Shares Series 3 (the “Series 3 Preferred Shares”) (TSX: MFC.PR.F) or 1,462,097 Non-cumulative Floating Rate Class 1 Shares Series 4 (the “Series 4 Preferred Shares”) (TSX: MFC.PR.P) on June 19, 2026.

As a result, subject to certain conditions described in the prospectus supplement dated March 7, 2011 relating to the issuance of the Series 3 Preferred Shares and Series 4 Preferred Shares (the “Prospectus”), the holders of the Series 3 Preferred Shares have the right, at their option, to convert all or part of their Series 3 Preferred Shares on a one-for-one basis into Series 4 Preferred Shares on June 19, 2026. As well, subject to certain conditions, the holders of Series 4 Preferred Shares have the right to convert all or part of their Series 4 Preferred Shares on a one-for-one basis into Series 3 Preferred Shares on June 19, 2026. Holders who do not exercise their right to convert their Series 3 Preferred Shares into Series 4 Preferred Shares will retain their Series 3 Preferred Shares. Holders who do not exercise their right to convert their Series 4 Preferred Shares into Series 3 Preferred Shares will retain their Series 4 Preferred Shares.

Beneficial owners of Series 3 Preferred Shares and Series 4 Preferred Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.m. (Toronto time) on June 4, 2026.

The foregoing conversions are subject to the conditions that: (i) if, after June 4, 2026, Manulife determines that there would be less than 1,000,000 Series 3 Preferred Shares outstanding on June 19, 2026, then all remaining Series 3 Preferred Shares will automatically be converted into an equal number of Series 4 Preferred Shares on June 19, 2026, and (ii) if, after June 4, 2026, Manulife determines that there would be less than 1,000,000 Series 4 Preferred Shares outstanding on June 19, 2026, then all remaining Series 4 Preferred Shares will automatically be converted into an equal number of Series 3 Preferred Shares. In either case, Manulife shall give written notice to that effect to any registered holders of Series 3 and Series 4 Preferred Shares on or before June 7, 2026.

The dividend rate applicable to the Series 3 Preferred Shares for the 5-year period commencing on June 20, 2026, and ending on June 19, 2031, and the dividend rate applicable to the Series 4 Preferred Shares for the 3-month period commencing on June 20, 2026, and ending on September 19, 2026, will be determined and announced by way of a news release on May 21, 2026. Manulife will also give written notice of these dividend rates to the registered holders of Series 3 Preferred Shares and Series 4 Preferred Shares.

Conversion inquiries should be directed to Manulife’s Registrar and Transfer Agent, TSX Trust Company (Canada), at 1-800-783-9495.

MFC.PR.F was issued as a 4.20%+141 FixedReset that commenced trading 2011-3-11 after being announced 2011-3-7. Notice of extension was published in 2016 and the rate reset to 2.178%. I recommended that holders not convert to FloatingResets but there was a 21% conversion anyway. In 2021, the dividend rate on MFC.PR.F reset to 2.348% and there was a 3% net conversion to the FixedReset.

MFC.PR.P is a FloatingReset, Bills+141bp, which arose via a partial conversion from MFC.PR.F in 2016.

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

The G&M reports:

Asset manager Brookfield Corp. is working on converting its massive renewable power and infrastructure businesses from limited partnerships into traditional corporate structures, a move meant to gain more passive investors.

This week, Brookfield Renewable Partners LP, which has a $13.7-billion market capitalization, and Brookfield Infrastructure Partners LP, valued at $22.5-billion, announced their boards “have recently begun exploring whether a single combined corporate structure would be the best path forward.”
…
Brookfield is following a path blazed by several large North American infrastructure and power companies that acquired assets previously owned through limited partnerships to simplify their corporate structures and boost their stock price.

Companies that took these steps include pipeline operators TC Energy Corp., Enbridge Inc. and Kinder Morgan Inc.

On Friday, the spread between the price of Brookfield Renewable’s limited partnership units and corporate shares narrowed to 9.5 per cent after the company announced the board is considering creating a single entity. Mr. Hope said this is “well down from levels seen at the beginning of the week and year.”

A similar gap existed between the price of units in Brookfield Business Partners LP, the asset manager’s private equity arm, and shares in Brookfield Business Corp., which was created in 2022.

Brookfield Infrastructure Partners L.P. 26Q1 Press Release:

BIP and BIPC Structure

At the direction of the Board, we have recently begun exploring whether a single combined corporate structure would be the best path forward. The goal is to determine if, on a tax-free basis, we can create a single corporate security that would enhance liquidity, increase index inclusion, and create value for our investors.

Brookfield Renewable Partners L.P.’s 26Q1 Press Release:

BEP and BEPC Structure

• We have recently begun exploring whether a single combined corporate structure would be the best path forward. The goal is to determine if, on a tax-free basis, we can create a single corporate security that would enhance liquidity, increase index inclusion and create value for our investors.

Affected issues are: BIP.PR.E, BIP.PR.F, BEP.PR.M and BEP.PR.R.

ECN.PR.C was delisted today in accordance with the company’s press release dated 2026-04-24 (emphasis added – JH):

ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”) announced today the successful completion of the Company’s previously announced plan of arrangement (the “Arrangement”) whereby a newly formed acquisition vehicle controlled by an investor group led by investment funds managed by Warburg Pincus LLC and including Goodview Capital Corp. (the “Purchaser”) acquired (i) all of the issued and outstanding common shares of the Company (the “Common Shares”) for C$3.10 in cash per Common Share; (ii) all of the issued and outstanding cumulative 5-year minimum rate reset preferred shares, Series C of the Company (the “Series C Preferred Shares”) for C$26.00 in cash per Series C Preferred Share (plus all accrued but unpaid dividends thereon); and (iii) all of the issued and outstanding mandatory convertible preferred shares, Series E of the Company (the “Series E Preferred Shares” and, together with the Common Shares and Series C Preferred Shares, the “Shares”) for C$3.10 in cash per Series E Preferred Share (plus all accrued but unpaid dividends thereon).

As a result of the completion of the Arrangement, it is expected that the Common Shares and Series C Preferred Shares will be de-listed from the Toronto Stock Exchange (the “TSX”) shortly after the date hereof. The Company expects that its 6.00% Senior Unsecured Debentures of the Company due December 31, 2026 (the “2026 Debentures”), 6.25% Senior Unsecured Debentures of the Company due December 31, 2027 (the “2027 Debentures”) and 6.50% Convertible Senior Unsecured Debentures of the Company due April 30, 2030 (the “2030 Convertible Debentures” and, together with the 2026 Debentures and 2027 Debentures, the “Debentures”) will continue to be listed on the TSX and the Company will continue to be a reporting issuer under applicable Canadian securities laws.
…
Immediately prior to giving effect to the Arrangement and the transactions related thereto, the Purchaser did not own, or exercise control or direction over, directly or indirectly, any Shares. Pursuant to the Arrangement and the transactions related thereto, the Purchaser acquired ownership and control over (i) 281,733,450 Common Shares, representing 100% of the issued and outstanding Common Shares, for an aggregate purchase price of C$873,373,695.00, (ii) 3,712,400 Series C Preferred Shares, representing 100% of the issued and outstanding Series C Preferred Shares, for an aggregate purchase price of C$97,006,761.40 and (iii) 27,450,000 Series E Preferred Shares, representing 100% of the issued and outstanding Series E Preferred Shares, for an aggregate purchase price of C$86,137,528.44. A copy of the Purchaser’s early warning report will be filed under the Company’s profile on SEDAR+ and further information and/or a copy of the Purchaser’s early warning report may be obtained from Sean Milne, Chief Financial Officer of the Company, Tel: 561-717-4772. The Purchaser’s principal office is located at 777 South Flagler Drive, Suite 800 East, West Palm Beach, Florida 33401.

ECN.PR.C was issued as a FixedReset, 6.25%+519M625, that commenced trading 2017-5-25 after being announced 2017-5-15. It reset to 7.937% in 2022. The potential for the acquisition was announced in November, 2025. The intended acquisition of the Series C shares was reported in January. ECN.PR.C was tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns.

Thanks to Assiduous Readers Fletcher Lynd and CanSiamCyp for bringing this to my attention!

Brompton Funds has announced:

Global Dividend Growth Split Corp. (the “Fund”) is
pleased to announce its intention to complete a stock split of its class A shares (the “Share Split”) due to the Fund’s strong performance. Class A shareholders of record at the close of business on May 11, 2026 will receive 15 additional class A shares for every 100 class A shares held, pursuant to the Share Split. The Share Split is subject to the approval of the Toronto Stock Exchange (the “TSX”).

Class A shareholders will continue to receive the same regular monthly non-cumulative cash distributions (currently $0.10 per class A share) following the Share Split. As a result, the total dollar amount of distributions to be paid to class A shareholders is expected to increase by approximately 15%. The Fund provides a distribution reinvestment plan (“DRIP”), on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth. Class A shareholders can enroll in the DRIP program by contacting their investment advisor.

Since inception on June 15, 2018 to March 31, 2026, the class A shares have delivered a 13.5% per annum total return based on net asset value, outperforming the MSCI World High Dividend Yield Total Return Index by 5.2% per annum and the MSCI World Total Return Index by 2% per annum.(1) Since inception, class A shareholders have received cash distributions of $9.35 per share.

Following the completion of the Share Split, the preferred shares of the Fund are expected to have downside protection from a decline in the value of the Fund’s portfolio of approximately 54%.(2)

The class A shares are expected to commence trading on an ex-split basis at the opening of trading on May 11, 2026. No fractional class A shares will be issued and the number of class A shares each holder shall receive will be rounded down to the nearest whole number. The Share Split is a non-taxable event.

The Fund is also pleased to announce that the preferred share distribution rate for the extended term from July 1, 2026 to June 27, 2031 will be $0.62 per preferred share per annum (6.2% on the par value of $10.00) payable quarterly. This represents a pre-tax interest equivalent yield of 8.1% per annum.(3) The preferred share distribution rate for the extended term is based on current market rates for preferred shares with similar terms.

The term extension offers preferred shareholders the opportunity to continue enjoying preferential cash dividends until June 27, 2031. Since inception on June 15, 2018 to March 31, 2026, the preferred shares of the Fund have delivered a 5.1% per annum return(1)
.
The Fund invests in a diversified portfolio (the “Portfolio”) of equity securities of large capitalization global dividend growth companies selected by Brompton Funds Limited (the “Manager”), the manager of the Fund. In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least $10 billion, and (ii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.

In connection with the extension, shareholders who do not wish to continue their investment in the Fund may retract their preferred shares or class A shares on June 30, 2026 pursuant to a special retraction right and receive a retraction price that is calculated in the same way that such price would be calculated if the Fund were to terminate on June 30, 2026. Pursuant to this option, the retraction price may be less than the market price if the security is trading at a premium to net asset value. To exercise this retraction right, shareholders must provide notice to their investment dealer by May 29, 2026 at 5:00 p.m. (Toronto time). Alternatively, shareholders may sell their preferred shares and/or class A shares through their securities dealer for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.

The extension was previously reported on PrefBlog. The previous distribution rate was 5.0%.

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

Brompton Group has announced:

Life & Banc Split Corp. (the “Fund”) is pleased to announce it is undertaking a treasury offering of preferred shares (“Preferred Shares”) (the “Offering”).

The sales period for this offering is expected to end on Thursday, April 23, 2026. The offering is expected to close on or about April 30, 2026 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The Preferred Shares will be offered at a price of $10.50 per Preferred Share to yield 6.9%.(1) The closing price on the TSX for the Preferred Shares on April 21, 2026 was $10.55. The offering is being led by RBC Capital Markets.

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, in the amount of $0.18125 per Preferred Share (7.25% per annum on the original $10.00 issue price), and to return the original issue price to holders of Preferred Shares on October 30, 2028.

Purchasers of Preferred Shares in this Offering will be eligible to receive the full June 2026 quarterly dividend of $0.18125 per Preferred Share when the dividend is declared. The Fund has declared aggregate dividends on the Preferred Shares of $10.55 per Preferred Share, representing 78 consecutive quarterly dividends since inception on October 17, 2006 to March 31, 2026.

Based on the most recently calculated net asset value per unit of the Fund on April 16, 2026, adjusted for the April 20, 2026 stock split of the Fund’s class A shares, the Preferred Shares have downside protection from a decline in the value of the Fund’s portfolio of approximately 56%. The Preferred Shares are rated Pfd-3 by Morningstar DBRS.

The Fund invests on an approximately equally weighted basis, in a portfolio (the “Portfolio”) consisting of common shares of the six largest Canadian banks and the four major publicly traded Canadian life insurance companies:

Bank of Montreal	Great-West Lifeco Inc.
National Bank of Canada	The Bank of Nova Scotia
Canadian Imperial Bank of Commerce	Royal Bank of Canada
iA Financial Corporation Inc.	The Toronto-Dominion Bank
Sun Life Financial Inc.	Manulife Financial Corporation

This treasury offering is presumably intended to offset the projected imbalance of Capital Units and Preferred Shares, given the recently announced Capital Unit split.

Emera Incorporated has announced:

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

6.345% per annum on the Series J Shares ($0.3966 per Series J Share per quarter), being equal to the sum of the Government of Canada bond yield as at April 15, 2026, plus 3.28%, payable quarterly on the 15 th of February, May, August and November of each year during the five-year period commencing on May 15, 2026 and ending on (and inclusive of) May 14, 2031, and
5.598% on the Series K Shares for the three-month period commencing on May 15, 2026 and ending on (and inclusive of) August 14, 2026 ($0.3528 per Series K Share for the quarter), being equal to the sum of the three-month Government of Canada treasury bill yield rate as at April 15, 2026, plus 3.28% (calculated on the basis of the actual number of days elapsed during the quarter divided by 365), payable on the 15 th of August, 2026. The quarterly floating dividend rate will be reset every quarter.

Subject to certain conditions set out in the prospectus supplement of the Company dated March 26, 2021, to the short form base shelf prospectus of the Company dated March 12, 2021, relating to the issuance of the Series J Shares (collectively, the “Prospectus”), holders of the Series J Shares have the right, at their option, to convert all or any of their Series J Shares, on a one-for-one basis, into Series K Shares on May 15, 2026 (the “Conversion Date”). On such date, holders who do not exercise their right to convert their Series J Shares into Series K Shares will continue to hold their Series J Shares. The foregoing conversion right, after having taken into account all shares tendered for conversion by holders of Series J Shares, is subject to the following:

if the Company determines that there would be less than 1,000,000 Series K Shares outstanding on the Conversion Date, then holders of Series J Shares will not be entitled to convert their shares into Series K Shares, and
alternatively, if the Company determines that there would remain outstanding less than 1,000,000 Series J Shares on the Conversion Date, then all remaining Series J Shares will automatically be converted into Series K Shares on a one-for-one basis on the Conversion Date.

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

Holders of Series J 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 April 15, 2026 until 5:00 p.m. (EDT) on April 30, 2026. Any notices received after this deadline will not be valid. Holders of Series J Shares who wish to exercise their conversion right must carefully follow the procedures and instructions received from their broker or other nominee and contact their broker or other nominee if they need assistance. Such broker or other nominee may set deadlines for the return of instructions that are well in advance of the 5:00 p.m. (EDT) deadline on April 30, 2026. As such, it is recommended that holders of Series J Shares communicate instructions to their broker or other nominee well in advance of the deadline in order to provide their broker or other nominee with adequate time to complete the necessary steps prior to the deadline.

Holders of Series J Shares who do not provide notice or communicate with their broker or other nominee by the deadline will retain their Series J Shares and receive the new annual fixed dividend rate applicable to the Series J Shares, subject to the conditions stated above. Holders of Series J Shares will have the opportunity to convert their shares again on May 15, 2031 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 J Shares and Series K Shares, please see the Company’s Prospectus, which is available on SEDAR+ at www.sedarplus.ca.

EMA.PR.J is a FixedReset, 4.25%+328M425, announced 2021-3-24. They recently issued some USD junior subordinated notes, but the proceeds of this issue have not been used for redemption of these preferreds. Extension of the issue was announced in April 2026. EMA.PR.J is tracked by HIMIPref™ but relegated to the Scraps – FixedReset (Premium) index on credit concerns.

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