Category: Issue Comments

Mulvihill has announced (on 2026-6-23):

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 June 29, 2026 will receive 20 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 20%.

The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on June 29, 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 impact of the Share Split will be reflected in the net asset value per Class A share as of July 9, 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

This announcement comes hard on the heels of the 2026-5-5 announcement of a 110-new-for-100-old Capital Unit Split.

They have now announced:

Premium Income Corporation (the “Fund”) is pleased to announce that it is undertaking an overnight treasury offering of Preferred Shares (the “Offering”).

The offering is expected to close on or about July 8, 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 $16.30 per Preferred Share. The trading price on the TSX for the Preferred Shares as at the last trade on June 26, 2026 was $16.56. Since the inception of the Fund, the aggregate dividends declared on the Preferred Shares have been $26.49 per share.

The Fund invests in a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the Fund’s portfolio, the Fund will selectively write covered call and put options in respect of some or all of the common shares in the Fund’s portfolio. The manager and investment manager of the Fund is Mulvihill Capital Management Inc.

The Preferred Shares pay fixed cumulative preferential monthly cash distributions in the amount of $0.10625 ($1.275 per annum) per Preferred Share representing a yield of 8.50% on the original issue price of $15.00.

The syndicate of agents for the offering is being led by National Bank Financial Inc.

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

Quadravest has announced:

North American Financial 15 Split Corp. (the “Company”) is pleased to announce its intention to complete a share split of its Class A shares (the “Share Split”) due to the Company’s strong performance. The Company is also pleased to announce a Preferred share overnight offering for which the sales period will end at 8:30 a.m. EST on June 26, 2026.

Class A Share Split (TSX: FFN):
The Class A shareholders of record at the close of business on July 3, 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 approval by the Toronto Stock Exchange (the “TSX”).

Class A shareholders will continue to receive regular monthly cash distributions targeted to be $0.11335 per Class A share following the Share Split, resulting in an increase in total distributions of approximately 10% through the issuance of additional shares. Since inception, Class A shareholders have received cash distributions of $19.22 per share.

The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on July 3, 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 impact of the Share Split is expected to be reflected in the net asset value per unit as at July 15, 2026.

Preferred Share Overnight Offering (TSX: FFN.PR.A):
The Company will undertake an overnight offering of Preferred shares of the Company. The offering will be led by National Bank Financial Inc. The sales period of this overnight offering will end at 8:30 a.m. EST on June 26, 2026. The offering is expected to close on or about July 6, 2026 and is subject to certain closing conditions including approval by the TSX.

The Preferred shares will be offered at a price of $10.90 per Preferred share. The closing price on the TSX of the Preferred shares on June 24, 2026 was $11.10.

Since inception of the Company, the aggregate dividends paid on the Preferred shares have been $12.87 per share. All distributions to date have been made in tax advantage eligible Canadian dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio primarily consisting of financial services companies made up of Canadian and U.S. issuers as follows: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, National Bank of Canada, Manulife Financial Corporation, Sun Life Financial Inc., Great-West Lifeco, Bank of America, Citigroup Inc., Goldman Sachs Group, JP Morgan Chase & Co. and Wells Fargo & Co.

The Company’s Preferred share investment objectives are:
i. effective December 1, 2025, to provide holders of the Preferred shares with fixed, cumulative monthly dividends at an annual rate of 7.50%, as determined annually by the Board of Directors, and subject to a minimum rate of 7.00% until 2029; and
ii. on or about the termination date, currently December 1, 2029 (subject to further 5-year extensions thereafter), to pay the holders of the Preferred shares $10.00 per Preferred share.

More preparation for the prefinfo.com relaunch!
The three issues here are:

There was a reorganization effective 2005-01-24 in which both BNF.PR.A & BNF.PR.C were converted in BNN.PR.K. This is described in this document.

The relevant section is on page 12 of the PDF:

Great-West Lifeco has announced:

the closing of its previously announced offering of 8,000,000 5.70% Non-Cumulative First Preferred Shares, Series 24 (the “Series 24 Shares”) for gross proceeds of $200 million, which includes the full exercise of the underwriters’ option. The offering was completed through a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank. The Series 24 Shares will be listed for trading on the Toronto Stock Exchange under the symbol “GWO.PF.A”.

This issue was announced 2026-06-16.

The issue traded in a range of 24.85-95 today on volume of 509,150 shares (consolidated: 742,360), before closing at 24.85-88. Interactive Brokers did not have the new issue set up for trading on their platform – they very often miss the opening day of new issues and sometimes a few more besides. Nice to see the greenshoe was fully exercised.

The issue has been added to the PerpetualDiscount subindex. Vital statistics are:

Ah, the life of a quant! I have spent more time over the years trying to figure out what happened to such-and-such twenty years ago that caused such price fluctuations / ticker changes / mysterious disappearances …

So as part of a project to clean up my databases as part of the preparation for the re-emergence of prefinfo.com, I had to figure out what happened to MMF.PR.C in 2004. According to my databases, MMF.PR.C:
i) converted in its entirety to MIC.PR.A [Manufacturers Life Insurance Co(The)6.1% PR 6, not the currently trading MIC.PR.A] 2004-10-21.
ii) continued trading (and is priced in my databases) until 2004-11-26, despite its lack of existence according to the reorg file. It continued to exist according to the instruments file.
iii) was redeemed 2004-11-26 at 26.82

PrefBlog wasn’t around in 2004, so nothing was found when searching the ticker.

What actually happened according to a press release dated 2004-09-10 was:

Manulife will make a securities exchange offer to holders of the $100 million principal amount Second Preferred Shares, Series 3 of Maritime Life (TSX: MMF.PR.C). A new preferred share of Manulife with identical economic terms will be offered for each outstanding Series 3 Share. Subject to receipt of certain regulatory approvals, it is expected that the offer documentation will be mailed to holders of Series 3 Shares in late September, with the exchange of shares being completed in late October 2004.
…
In the event that not all the Series 3 shares are exchanged, the Board of Directors of Maritime Life has also approved a by-law providing for the consolidation of the Series 3 Shares on the basis of one consolidated Series 3 Share for each existing 1,000,000 Series 3 Shares. The by-law requires approval of both Maritime Life’s policyholders and preferred shareholders at Maritime Life’s special meeting in November and, if approved, will be implemented following the meeting. Series 3 shareholders who have previously exchanged their shares for Manulife preferred shares will not be affected by the consolidation. Manulife intends to vote all of the Series 3 Shares it acquires pursuant to the exchange offer in favour of the consolidation by-law.

So how do I treat this? Simulations may hold MMF.PR.C and need to be told what happens to it by way of reorg so they don’t blow up when the issue is no longer priced. Some simulations may have even bought MMF.PR.C after the 2024-10-21 Exchange Date (but, obviously, prior to the 2004-11-26 redemption date).

What I might do is:

• Put in a forced conversion to a new security (same ticker, but a change of terms, like a FixedReset resetting), effective 2004-9-10 (the date of the press release) that
  • has a put option effective 2004-10-20 at 26.82, and
  • is forcibly converted to MIC.PR.A effective 2004-10-21
• Accept the fact that the way things are currently programmed, future simulations will ignore the put and accept the forced conversion
• Accept the fact that the way things are currently programmed, the simulated portfolio will think it will get the 26.82 on the put date of 2004-10-20 when in fact excercising the option means it would get the redemption value on the redemption date of 2004-11-26

I really don’t want to do all the programming required to allow simulations to choose whether or not to accept the option; that will be complex and I don’t think it will lead to any improvement in meeting the purpose of simulations (refining valuation, risk and trading parameters). On the other hand, having some kind of option-decider routine might – possibly – lead to such an improvement if, for instance, the machine ‘sees’ it can buy a FloatingReset really cheap right now with the intent of converting it to the FixedReset in a year or two.

What I really need is an army of programmers, but first I’ve got to get the Assets Under Management up a little.

For now, the bottom line is:

• I need the reorg file to reflect the first reorg event because I need to explain where MIC.PR.A came from
• I need the reorg file to reflect the second reorg event because I need to explain where the residual MMF.PR.C went to

Why am I telling you all this? Because I don’t want to go through this entire process again in 2046, when the issue will arise again and I couldn’t figure out how to file this information on my computer so that I will find it easily at that time. Now it’s on the easily accessible PrefBlog, which will live forever, just like me!

Quadravest has announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce it will undertake an offering of Preferred Shares (TSX: FTN.PR.A) of the Company. The offering will be led by National Bank Financial Inc.

The sales period of this overnight offering will end at 8:30 a.m. EST on June 17, 2026. The offering is expected to close on or about June 24, 2026 and is subject to certain closing conditions including approval by the TSX.

The Preferred Shares will be offered at a price of $10.78 per Preferred Share.

The closing price on the TSX of the Preferred Shares on June 15, 2026 was $10.84.

Since the inception of the Company, 270 consecutive dividends have been declared for the Preferred Shares. The aggregate dividends declared on the Preferred Shares total $13.26 per share. All distributions to date have been made in tax advantaged eligible Canadian dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high-quality portfolio primarily consisting of financial services companies made up of Canadian and U.S. issuers as follows:

Bank of Montreal	National Bank of Canada	Bank of America Corp
The Bank of Nova Scotia	Manulife Financial Corporation	Citigroup Inc.
Canadian Imperial Bank of Commerce	Sun Life Financial Services of Canada Inc.	Goldman Sachs Group Inc.
Royal Bank of Canada	Great-West Lifeco Inc.	JP Morgan Chase & Co.
The Toronto-Dominion		Bank Wells Fargo & Co.

The Company’s Preferred Share investment objectives are:

• i. effective December 1 ,2025, to provide holders of the Preferred Shares with fixed, cumulative monthly dividends at an annual rate of 7.25%, as determined annually by the Board of Directors, and subject to a minimum rate of 6.00% until
  2030; and

• ii. on or about the termination date, currently December 1, 2030 (subject to further 5 year extensions thereafter), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

The NAVPU was 22.58 on June 15, compared with closing prices of 10.84 for the preferred and 11.04 for the Capital Units; total 21.88; a nice gain of $0.70 per unit sold for the fund’s existing holders; at least on the face of things. We don’t know what price the offsetting Capital Units were sold at; I’m guessing that was an ATM process.

Update, 2026-6-17: Assiduous Reader Niagara points out in the comments that FTN Capital Units split 110-new-for-100-old in May, which was not reported on PrefBlog. So I’ll report it here:

Financial 15 Split Corp. (the “Company”) is pleased to announce its intention to complete a share split of its Class A shares (the “Share Split”) due to the Company’s strong performance. The Class A shareholders of record at the close of business on May 19, 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 approval by the Toronto Stock Exchange (the “TSX”).

Class A shareholders will continue to receive regular monthly cash distributions targeted to be $0.12570 per Class A share following the Share Split, resulting in an increase in total distributions of approximately 10% through the issuance of additional shares. Since inception, Class A shareholders have received cash distributions of $28.57 per share.

The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on May 19, 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 impact of the Share Split is expected to be reflected in the net asset value per unit as at May 29, 2026.

The Company invests in a high quality portfolio primarily consisting of financial services companies made up of Canadian and U.S. issuers as follows: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, National Bank of Canada, Manulife Financial Corporation, Sun Life Financial, Great-West Lifeco, Bank of America, Citigroup Inc., Goldman Sachs Group, JP Morgan Chase & Co. and Wells Fargo & Co.

Manulife Financial Corporation has announced (on June 5):

that after having taken into account all election notices received by the June 4, 2026 deadline for conversion, 17,750 of its currently outstanding 6,537,903 Non-cumulative Rate Reset Class 1 Shares Series 3 (the “Series 3 Preferred Shares”) have been elected for conversion on June 19, 2026, on a one-for-one basis, into Non-cumulative Floating Rate Class 1 Shares Series 4 of Manulife (the “Series 4 Preferred Shares”), and 886,331 of its currently outstanding 1,462,097 Series 4 Preferred Shares have been elected for conversion on June 19, 2026, on a one-for-one basis, into Series 3 Preferred Shares.

Since there would be fewer than 1,000,000 Series 4 Preferred Shares outstanding after the conversion date (June 19, 2026), after taking into account all such election notices received by the June 4, 2026 deadline for conversion, (i) Manulife will automatically convert all remaining Series 4 Preferred Shares into Series 3 Preferred Shares, on a one-for-one basis, on the conversion date, and (ii) the holders of Series 3 Preferred Shares are not entitled to convert their Series 3 Preferred Shares into Series 4 Preferred Shares.

As a result, after giving effect to such conversion, on June 19, 2026, Manulife will have 8,000,000 Series 3 Preferred Shares issued and outstanding. The Series 3 Preferred Shares are listed on the Toronto Stock Exchange under the symbol MFC.PR.F.

As announced by Manulife on May 21, 2026, after June 19, 2026, holders of Series 3 Preferred Shares will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Manulife (the “Board”) and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on June 20, 2026, and ending on June 19, 2031, will be 4.64000% per annum or $0.290000 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at May 21, 2026, plus 1.41%, as determined in accordance with the terms of the Series 3 Preferred Shares.

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. Notice of extension was given in 2026 and the rate reset to 4.64%.

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

DBRS has announced that it:

upgrades the credit rating on the Preferred Shares issued by Brompton Split Banc Corp. (the Company) to Pfd-3 (high) from Pfd-3. The rating upgrade reflects continued improvement in the downside protection of the Preferred Shares over the past three years, supported by dividend coverage exceeding 1.0 times (x). Brompton Funds Limited is the manager (the Manager).

The Company invests, on an approximately equally weighted basis in a portfolio of common shares (the Portfolio) of the six largest Canadian banks. Holdings in the six largest Canadian banks will generally be equal-weighted at each rebalancing of the Portfolio, but the Company may, at the Manager’s discretion, hold non-equal-weight positions. Also, the Company may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purposes of enhanced diversification and return potential, at the discretion of the Manager. In addition to, or instead of, investing in Canadian banks and/or global financial companies directly, the Company may invest, at the Manager’s discretion, a portion of the Portfolio’s assets in exchange-traded funds, including exchange-traded funds managed by the Manager. There will be no duplication of management fees payable by the Company in connection with any investment by the Company in exchange-traded funds managed by the Manager. As of April 30, 2026, the Portfolio holdings were as follows: The Toronto-Dominion Bank (15.4%), Canadian Imperial Bank of Commerce (15.4%), National Bank of Canada (15.4%), The Bank of Nova Scotia (15.2%), Royal Bank of Canada (15.0%), Bank of Montreal (14.9%) and Brompton North American Financials Dividend ETF (8.8%).

The Portfolio may contain the common shares of less than six Canadian banks as a result of the impact of a merger, acquisition or other significant corporate actions or events affecting one or more of the Canadian banks in the Portfolio. The Manager may, at its discretion, selectively write covered call options and cash covered put options from time to time in respect of the securities included in the Portfolio in order to generate additional distributable income for the Company. The Company also hedges substantially all of its foreign currency exposure to the holdings in the Portfolio back to the Canadian dollar, if any.

Distributions on the Preferred Shares are made quarterly in the amount of $0.15625, yielding 6.25% annually on the original $10.0 issue price. Distributions on the Class A Shares are made monthly in the amount of $0.10 per share. No monthly distributions to the Class A Shares will be made if distributions to the Preferred Shares are in arrears or the net asset value (NAV) per unit (a unit means a notional unit consisting of one Preferred Share and one Class A Share) falls below $15.0. The Company’s NAV has stayed above $15.00 during the last 12 months resulting in the Company declaring cash distributions of $1.20 per Class A Share during that period.

All Preferred Shares and Class A Shares are scheduled to be redeemed by the Company on November 29, 2027, unless the term of the Company is extended. The board of directors may extend the term of the Company and the shares by successive terms of up to five years, provided that shareholders are given an optional retraction at the end of each successive term. On maturity, the holders of the Preferred Shares will be entitled to the value of the Company up to the face value of the Preferred Shares in priority to the holders of the Class A Shares. Holders of the Class A Shares will receive the remaining value of the Company.

On October 6, 2025 and February 12, 2026, the Company announced two stock splits of its Class A Shares (Stock Splits). Pursuant to the October 6, 2025 announcement, shareholders of record as of the close of business on October 27, 2025 received 17 additional Class A Shares for every 100 shares held. Pursuant to the February 12, 2026 announcement, shareholders of record as of the close of business on February 24, 2026 received 20 additional Class A Shares for every 100 shares held.

As of May 28, 2026, the downside protection available to holders of the Preferred Shares increased to 59.3% from 52.8% as of May 31, 2025. The dividend coverage ratio slightly declined to 1.1x compared with the prior year but remained above 1.0x, reflecting the consistent dividend yield generated by the Portfolio holdings. To supplement the Portfolio income, the Company may engage in securities lending or covered call option writing on the shares held in the Portfolio. Without giving consideration to capital appreciation potential or any source of income other than the dividends earned by the Portfolio, the current distributions on the Class A Shares will create a projected grind on the NAV of the Portfolio of approximately 5.6% per year over the next 5 years.

Considering the increase in the amount of downside protection, dividend coverage above 1.0x, the Portfolio concentration in one industry, remaining term, Stock Splits and the projected Portfolio grind, Morningstar DBRS upgraded the credit rating on the Preferred Shares to Pfd-3 (high) from Pfd-3.

The main constraints to the credit rating are as follows:

(1) Volatility of price and changes in the dividend policies of the underlying issuers may result in significant reductions in the Preferred Shares’ dividend coverage or downside protection from time to time.

(2) The Company relies on the Portfolio manager to generate additional income, through option writing, to meet distributions and other trust expenses without having to liquidate the portfolio’s securities.

(3) Stated monthly distributions on the Class A Shares will likely create a grind on the portfolio. This risk is mitigated by an asset coverage test of 1.5x that ensures sufficient levels of downside protection to the holders of the Preferred Shares.

Morningstar DBRS’ credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions’ respective press releases at issuance.

This happens despite two Capital Unit splits in quick succession, in February 2026 and October 2025.

Brompton Group has announced:

Power & Infrastructure 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 the Offering is expected to end on Thursday, June 4, 2026. The Offering is expected to close on or about June 11, 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 $13.60 per Class A Share for a distribution rate of 8.8% on the issue price.(1)(2) The Preferred Shares will be offered at a price of $10.40 per Preferred Share to yield 6.2%.(2) The closing price on the TSX for each of the Class A Shares and the Preferred Shares on June 2, 2026 were $13.75 and $10.48, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value (“NAV”) per unit of the Company (calculated as at June 2, 2026), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the Offering. The Offering is being led by RBC Capital Markets.

The Company invests in a globally diversified and actively managed portfolio (the “Portfolio”) consisting primarily of dividend paying securities of power and infrastructure companies selected by Brompton Funds Limited.

The investment objectives for the Class A Shares are to provide their holders with regular monthly non-cumulative cash distributions and to provide holders of Class A Shares with the opportunity for capital appreciation through exposure to the Portfolio. Over the past 5 years, the Class A Share has generated a 17.5% per annum return.(2)

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders of Preferred Shares on May 29, 2031. The distribution rate for the term from May 30, 2026 to May 29, 2031 is $0.64 per Preferred Share per annum (6.4% on the par value of $10.00) payable quarterly. Over the past 5 years, the Preferred Share has generated a 5.1% per annum return.(2) Purchasers of Preferred Shares in this Offering will be eligible to receive the June 2026 quarterly dividend when the dividend is declared.

So the NAVPU is 22.52 and they’re selling these Whole Units for a total of 24.00. Nice business!

PWI.PR.A now pays 6.4% p.a. after its recent extension to 2031-5-29.