Category: Issue Comments

Great-West Lifeco Inc. has announced:

the dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (“Series N Shares”) and Non-Cumulative Floating Rate First Preferred Shares, Series O (“Series O Shares”).

The annual fixed dividend rate for the five-year period starting on December 31, 2025 and ending on December 30, 2030 that will apply to any Series N Shares that remain outstanding on December 31, 2025 will be 4.090% per annum (or $0.255625 per Series N Share per quarter). The 4.090% annual rate is equal to the sum of the Government of Canada Yield (as defined in the Series N Share terms) on December 1, 2025 plus 1.30%.

The floating dividend rate for the period starting on December 31, 2025 and ending on March 30, 2026 that will apply to any Series O Shares issued on December 31, 2025 will be 3.518% per annum (or $0.216863 per Series O Share per quarter). The 3.518% annual rate is equal to the sum of the T-Bill Rate (as defined in the Series O Share terms) on December 1, 2025 plus 1.30%.

A news release announcing the conversion right for the Series N Shares was issued on November 13, 2025 and can be viewed on Lifeco’s website. Beneficial owners of Series N Shares who wish to convert their shares into Series O Shares should communicate as soon as possible with their broker or other nominee to ensure their instructions are followed, so that the registered holder of the Series N Shares can meet the deadline to exercise the conversion right, which is 5:00 p.m. (ET) on Tuesday, December 16, 2025.

GWO.PR.N was issued as a FixedReset, 3.65%+130, that commenced trading 2010-11-23 after being announced 2010-11-15. The issue was met with disfavour and there was an inventory clearance sale closing 2010-12-3. After a notice of extension the issue issue reset to 2.176% in 2015. I recommended against conversion; there was a 15% conversion to the FloatingReset GWO.PR.O anyway. The company provided another notice of extension in November, 2020. The issue reset to 1.749% effective 2020-12-31 and there was a forced conversion from GWO.PR.O to the FixedReset. A notice of extension was provided 2025-11-13. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Insurance) subindex.

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

Update, 2025-12-18: Great-West Lifeco Inc. has announced:

that holders of 6,425 Lifeco Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (“Series N Shares”) have elected to convert their Series N Shares on a one-for-one basis into Non-Cumulative Floating Rate First Preferred Shares, Series O (“Series O Shares”) on December 31, 2025.

Lifeco currently has 10,000,000 Series N Shares outstanding. After taking into account all shares tendered for conversion, there would be less than one million Series O Shares outstanding on December 31, 2025. As a result and in accordance with the terms and conditions of the shares, no Series N Shares may be converted into Series O Shares on December 31, 2025. Lifeco will give written notice to that effect to any registered holder on or before Wednesday, December 24, 2025.

Thanks to Assiduous Readers P_I and Niagara for bringing this to my attention in the comments below!

Capital Power Corporation has announced:

that it has notified registered shareholders of its Cumulative Rate Reset Preference Shares, Series 1 (the “Series 1 Shares”) (TSX: CPX.PR.A) of the conversion privilege and dividend rate applicable to the Series 1 Shares.

Subject to certain conditions, beginning on December 1, 2025 and ending at 5:00 p.m. (Toronto time) on December 16, 2025 (the “Election Period”), each registered holder of Series 1 Shares will have the right to elect to convert any or all of their Series 1 Shares into an equal number of Cumulative Floating Rate Preference Shares, Series 2 (the “Series 2 Shares”) by delivering a completed election notice (an “Election Notice”) to the Corporation.

If Capital Power does not receive an Election Notice from a holder of Series 1 Shares during the Election Period, then such holder will be deemed not to have exercised its right to convert (except in the case of an Automatic Conversion, as described below). Holders of the Series 1 Shares and the Series 2 Shares will have the opportunity to convert their shares again on December 31, 2030, and every five years thereafter as long as such shares remain outstanding.

On December 1, 2025, the annual fixed dividend rate for the Series 1 Shares was set for the next five-year period (from and including December 31, 2025, to but excluding December 31, 2030) at 4.95800% and the floating quarterly dividend rate for the Series 2 Shares was set for the first quarterly floating rate period (being the period from and including December 31, 2025, to but excluding March 31, 2026) at 1.08197%. The floating quarterly dividend rate for the Series 2 Shares will be reset every quarter.

The Series 1 Shares are issued in “book entry only” form and, as such, the sole registered holder of the Series 1 Shares is CDS Clearing and Depository Services Inc. (“CDS”). Accordingly, all rights of beneficial holders of Series 1 Shares must be exercised through CDS or the CDS participant through which the Series 1 Shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series 1 Shares into Series 2 Shares is 3:00 p.m. (MT) / 5:00 p.m. (ET) on December 16, 2025. Election Notices received after this deadline will not be valid. Beneficial holders of Series 1 Shares who wish to exercise their rights to convert should contact their broker or other intermediary for more information well in advance of the deadline in order to provide the broker or intermediary with time to complete the necessary steps.

After December 16, 2025, (i) if Capital Power determines that fewer than 1,000,000 Series 1 Shares would remain outstanding on December 31, 2025, all remaining Series 1 Shares will be automatically converted into Series 2 Shares on a one-for-one basis effective December 31, 2025 (an “Automatic Conversion”); or (ii) if Capital Power determines that fewer than 1,000,000 Series 2 Shares would remain outstanding after December 31, 2025, no Series 1 Shares will be permitted to be converted into Series 2 Shares effective December 31, 2025. There are currently 5,000,000 Series 1 Shares outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 2 Shares effective upon conversion. Listing of the Series 2 Shares is subject to Capital Power fulfilling all TSX listing requirements and, upon approval, the Series 2 Shares will be listed on the TSX under the trading symbol CPX.PR.B.

For more information on the terms of, rates and risks associated with an investment in, the Series 1 Shares and the Series 2 Shares, please see Capital Power’s Short Form Prospectus dated December 8, 2010 which is available electronically on the System for Electronic Data Analysis and Retrieval + (“SEDAR+”) at www.sedarplus.ca or on Capital Power’s website at capitalpower.com.

CPX.PR.A was issued as a FixedReset 4.60%+217 that commenced trading 2010-12-16 after being announced 2010-12-1. It reset to 3.06% effective 2015-12-31 and I recommended against conversion; there was no conversion to FloatingResets. It reset to 2.621% effective 2020-12-31 and there was no conversion. The issue is tracked by HIMIPref™ but is relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.

Update, 2026-01-02: The company has announced (on 2025-12-17):

that following the December 16, 2025 deadline for submitting notices to convert Cumulative Rate Reset Preference Shares, Series 1 (the “Series 1 Shares”) into Cumulative Floating Rate Preference Shares, Series 2 (the “Series 2 Shares”), the number of Series 1 Shares tendered for conversion was less than one million. As a result, holders of Series 1 Shares are not entitled to convert their shares into Series 2 Shares, and no Series 2 Shares will be issued at this time. There were no Series 1 Shares tendered for conversion.

There are 5,000,000 Series 1 Shares listed on the Toronto Stock Exchange (“TSX”) under the symbol CPX.PR.A. Effective December 31, 2025, the annual fixed dividend rate for the next five-year period has been reset to 4.95800%.

For more information on the terms of, rates and risks associated with an investment in the Series 1 Shares, please see Capital Power’s Short Form Prospectus dated December 8, 2010 which is available electronically on the System for Electronic Data Analysis and Retrieval + (“SEDAR+”) at www.sedarplus.ca or on Capital Power’s website at capitalpower.com.

Fairfax Financial Holdings Limited has announced:

its intention to redeem (i) all of its 10,420,101 outstanding Cumulative 5-Year Rate Reset Preferred Shares, Series I (the “Series I Shares”), and (ii) all of its 1,579,899 outstanding Cumulative Floating Rate Preferred Shares, Series J (the “Series J Shares” and, together with the Series I Shares, the “Preferred Shares”) on December 31, 2025 (the “Redemption Date”) at a redemption price equal to C$25.00 per share, for an aggregate total amount of C$300.0 million, together with all accrued and unpaid dividends up to but excluding the Redemption Date (the “Redemption Price”), less any tax required to be deducted and withheld by Fairfax.

Formal notice has been delivered to the sole registered holder of the Preferred Shares in accordance with the terms of the Preferred Shares of the applicable series as set out in Fairfax’s articles.

Separately from the Redemption Price, (i) the final quarterly dividend of C$0.207938 per Series I Share will be paid in the usual manner to holders of Series I Shares on December 31, 2025, and (ii) the final quarterly dividend of C$0.34727 per Series J Share will be paid in the usual manner to holders of Series J Shares on December 30, 2025, in each case to shareholders of record on December 15, 2025.

Non-registered holders of Preferred Shares should contact their broker or other intermediary for information regarding the redemption process for the series of Preferred Shares in which they hold a beneficial interest. Fairfax’s transfer agent for the Preferred Shares is Computershare Trust Company of Canada (“Computershare”). Questions regarding the redemption process may be directed to Computershare at 1-800-564-6253 or by email to corporateactions@computershare.com.

Following the redemption on December 31, 2025, the Series I Shares and the Series J Shares will be delisted from and no longer trade on the Toronto Stock Exchange (“TSX”).

Fairfax is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.

FFH.PR.I was issued as a FixedReset, 5.00%+285, that commenced trading 2010-10-5 after being announced 2010-9-27. The issue reset at 3.708% in 2015 and I recommended against conversion. In 2020, the issue reset to 3.327%.

FFH.PR.J is a FloatingReset, Bills+285, that came into existence in 2015 via partial conversion from FFH.PR.I.

Canadian Utilities Limited has announced:

it has closed its previously announced public offering of Cumulative Redeemable Second Preferred Shares Series JJ, by a syndicate of underwriters co-led by BMO Capital Markets and RBC Capital Markets, and including TD Securities Inc., Scotiabank, CIBC Capital Markets, National Bank Financial Inc., and ATB Capital Markets (the “Underwriters”). Canadian Utilities issued 8,050,000 Series JJ Preferred Shares for gross proceeds of $201,250,000, which includes the full exercise of the Underwriters’ over-allotment option. The Series JJ Preferred Shares will begin trading on the Toronto Stock Exchange (the “TSX”) today under the symbol CU.PR.K. Proceeds from the issue will be used for capital expenditures and for other general corporate purposes.

CU.PR.K is a Straight Perpetual, 5.60%, announced 2025-11-12. It has been assigned to the PerpetualDiscounts subindex.

The issue traded 487,376 shares today in a range of 24.88-00 before closing at 24.96-00. Vital statistics are:

Brookfield Corporation has announced:

the completion of its previously announced Class A Preference Shares, Series 54 (“Preferred Shares, Series 54”) issue in the amount of C$250,000,000 (the “Offering”). The Offering was underwritten on a bought deal basis by a syndicate of underwriters (the “Underwriters”) led by Scotiabank, BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets and TD Securities Inc.

A total of 10,000,000 Preferred Shares, Series 54 were issued at a price of C$25.00 per share, for gross proceeds of C$250,000,000. The issuance included 2,000,000 Preferred Shares, Series 54 issued pursuant to the exercise, in full, of the Underwriters’ option granted by Brookfield to the Underwriters in the Offering. Holders of the Preferred Shares, Series 54 will be entitled to receive a cumulative quarterly fixed dividend yielding 5.65% annually for the initial period ending December 31, 2030. Thereafter, the dividend rate will be reset every five years at a rate equal to the greater of: (i) the 5-year Government of Canada bond yield plus 2.80%, and (ii) 5.65%. The Preferred Shares, Series 54 will commence trading on the Toronto Stock Exchange this morning under the ticker symbol BN.PF.M. The Preferred Shares, Series 54 may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.

Brookfield intends to use the net proceeds from the Offering to redeem all of its outstanding Cumulative Class A Preference Shares, Series 44 (“Preferred Shares, Series 44”) (TSX: BN.PF.H) for cash on December 31, 2025. The redemption price for each share will be C$25.00. Holders of Preferred Shares, Series 44 of record as of December 15, 2025 will receive the previously declared quarterly dividend of C$0.3125 per share, payable on December 31, 2025.

BN.PF.M is a FixedReset, 5.65%+280M565, announced 2025-11-19.

The redemption of BN.PF.H is discussed elsewhere.

The issue traded 819,110 shares today in a range of 25.05-45 before closing at 25.30-34. Vital statistics are:

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

Great-West Lifeco Inc. has announced (on 2025-11-13):

that it does not intend to exercise its rights to redeem its outstanding Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (“Series N Shares”) on December 31, 2025. As a result and subject to certain conditions, holders of Series N Shares have the right to convert all or any of their Series N Shares into Non-Cumulative Floating Rate First Preferred Shares, Series O (“Series O Shares”) on a one-for-one basis on December 31, 2025.

Lifeco will send a formal notice of this conversion right to the registered holder of the Series N Shares in accordance with the terms and conditions attached to the shares. Holders of Series N Shares who do not exercise their conversion right will retain their Series N Shares.

The conversion right is subject to the following conditions: (i) if Lifeco determines that, after having taken into account all shares tendered for conversion, there would be less than one million Series O Shares outstanding on December 31, 2025, no Series N Shares may be converted into Series O Shares; and (ii) alternatively, if Lifeco determines that, after having taken into account all shares tendered for conversion, there would be less than one million Series N Shares outstanding on December 31, 2025, then all remaining Series N Shares will automatically be converted into Series O Shares on a one-for-one basis on December 31, 2025. In either case, Lifeco will give written notice to that effect to any registered holder affected by the preceding conditions on or before Wednesday, December 24, 2025.

The dividend rate applicable to the Series N Shares for the five-year period commencing on December 31, 2025 and ending on December 30, 2030, and the dividend rate applicable to the Series O Shares for the three-month period commencing on December 31, 2025 and ending on March 30, 2026, will be determined on Monday, December 1, 2025 and written notice of these rates will be given to the registered holder of the Series N Shares on that day.

Beneficial owners of Series N Shares who wish to convert their shares into Series O Shares should communicate as soon as possible with their broker or other nominee to ensure their instructions are followed, so that the registered holder of the Series N Shares can meet the deadline to exercise the conversion right, which is 5:00 p.m. (ET) on Tuesday, December 16, 2025.

Lifeco may redeem the Series N Shares, in whole or in part, on December 31, 2030 and on December 31 every five years thereafter for $25.00 per share plus declared and unpaid dividends. Lifeco may redeem the Series O Shares, in whole or in part, on any date for $25.50 per share plus declared and unpaid dividends, unless such Series O Shares are redeemed on December 31, 2030 or on December 31 every five years thereafter, in which case the redemption price will be $25.00 per share plus declared and unpaid dividends.

GWO.PR.N was issued as a FixedReset, 3.65%+130, that commenced trading 2010-11-23 after being announced 2010-11-15. The issue was met with disfavour and there was an inventory clearance sale closing 2010-12-3. After a notice of extension the issue issue reset to 2.176% in 2015. I recommended against conversion; there was a 15% conversion to the FloatingReset GWO.PR.O anyway. The company provided another notice of extension in November, 2020. The issue reset to 1.749% effective 2020-12-31 and there was a forced conversion from GWO.PR.O to the FixedReset. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Insurance) subindex.

Power Corporation has announced:

the closing of its offering of 8,000,000 5.65% Non-Cumulative First Preferred Shares, Series I in the capital of the Corporation (the “Series I Shares”) priced at $25.00 per share for gross proceeds of $200 million. The issue was bought by a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank.

The Series I shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “POW.PR.I”. The net proceeds of this offering will be used by Power Corporation for general corporate purposes.

POW.PR.I is a 5.65% Straight Perpetual announced 2025-11-13. It has been added to the PerpetualDiscount sub-index.

The issue traded 361,500 shares today in a range of 24.85-95 before closing at 24.87-88. Vital statistics are:

As part of its new issue announcement, Brookfield Corporation announced:

Brookfield intends to use the net proceeds from the Offering to redeem a minimum of C$200,000,000 of its outstanding Cumulative Class A Preference Shares, Series 44 (“Preferred Shares, Series 44”) (TSX: BN.PF.H) for cash on December 31, 2025. If the Underwriters’ option is exercised in full, Brookfield intends to redeem all of its Preferred Shares, Series 44 on December 31, 2025. The redemption price for each share will be C$25.00. Holders of Preferred Shares, Series 44 of record as of December 15, 2025 will receive the previously declared quarterly dividend of C$0.3125 per share, payable on December 31, 2025.

BN.PF.H was issued as BAM.PF.H, a FixedReset 5.00%+417M500, that commenced trading 2015-10-2 after being announced 2015-9-24. The issue reset to 5.00% (the minimum rate) in 2020. The ticker changed to BN.PF.H in late 2022. The issue is tracked by HIMIPref™ and has been assigned to the FixedResets subindex.

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

Update, 2025-11-26: As part of its announcement on the closing of 250-million par value BN.PF.M, Brookfield has announced:

Brookfield intends to use the net proceeds from the Offering to redeem all of its outstanding Cumulative Class A Preference Shares, Series 44 (“Preferred Shares, Series 44”) (TSX: BN.PF.H) for cash on December 31, 2025. The redemption price for each share will be C$25.00. Holders of Preferred Shares, Series 44 of record as of December 15, 2025 will receive the previously declared quarterly dividend of C$0.3125 per share, payable on December 31, 2025.

Normal Course Issuer Bids in the preferred share marketplace are usually more noise than signal, but not all the time! BCE has announced (on 2025-11-6):

that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by BCE of its intention to renew its normal course issuer bid (“NCIB”) to purchase up to 10% of the public float of each series of BCE’s outstanding First Preferred Shares that are listed on the TSX (the “Preferred Shares”). The period of the NCIB will extend from November 11, 2025 to November 10, 2026, or an earlier date should BCE complete its purchases under the NCIB. BCE will pay the prevailing market price at the time of acquisition for any Preferred Shares purchased plus brokerage fees payable by BCE (except with respect to purchases made under an issuer bid exemption order, which will be at a discount to the prevailing market price), and all Preferred Shares acquired by BCE under the NCIB will be cancelled.

The actual number of Preferred Shares repurchased under the NCIB and the timing of such repurchases will be at BCE’s discretion and shall be subject to the limitations set out in the TSX Company Manual.
…
As of October 31, 2025, under its current normal course issuer bid that commenced on November 11, 2024 and will expire on November 10, 2025, and for which the company received approval from the TSX, BCE purchased, through the facilities of the TSX and alternative eligible trading systems, Preferred Shares as follows: [see below — JH]

So according to this,they spent just over $175-million. That’s significant!