Category: Issue Comments

Middlefield Group Inc. has announced (on 2023-4-26):

The board of directors of E Split Corp. (the “Company”) has extended the maturity date of the Company for an additional 5-year term to June 30, 2028, as was detailed in the press release dated February 1, 2023.

The Company is pleased to announce that the distribution rate for the Preferred Shares for the new 5-year term from June 30, 2023 to June 30, 2028 will be $0.70 per annum (7.0% on the original issue price of $10) payable quarterly. The new distribution rate represents a 33.3% increase from the current $0.525 per annum distribution rate and provides investors with a competitive yield reflecting current market yields for preferred shares with similar terms. The new 5-year term extension also offers Preferred shareholders the opportunity to enjoy preferential cash dividends until June 30, 2028. Since inception from June 29, 2018 to March 31, 2023, the Preferred Share has delivered an attractive 5.3% per annum return.

In addition, the Company intends to maintain the targeted monthly Class A Share distribution rate at $0.13 per Class A Share. Since inception to March 31, 2023, the Class A shares have delivered a 11.1% per annum total return, including cash distributions of $7.01 per share. Class A shareholders also have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants.

The term extension allows Class A shareholders to continue to have exposure to common shares of Enbridge Inc. (“Enbridge”), a leading North American pipeline, natural gas processing and distribution company, while benefiting from an attractive distribution rate of 11.0% per annum based on the April 25, 2023 net asset value per share and the opportunity for capital appreciation. As North America’s largest midstream company, Enbridge has generated highly predictable, resilient cash flow and has provided superior dividend growth and value creation through various
commodity price cycles.

In connection with the extension, Shareholders can continue to hold their shares of both Classes and receive the new, higher distribution rate on the Preferred Shares by taking no action. Shareholders who do not wish to continue their investment in the Company, will be able to retract Preferred Shares or Class A Shares on June 30, 2023 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 Company were to terminate on June 30, 2023. Pursuant to this option, the retraction price may be less than the market price if the shares are trading at a premium to net asset value. To exercise this retraction right, shareholders must provide notice to their investment dealer by May 31, 2023 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.

E Split Corp. invests in common shares of Enbridge and intends to purchase Enbridge common shares from time to time in the market or through participation in future public offerings by Enbridge.

Capital Power Corporation has announced:

that it has notified registered shareholders of its Cumulative Rate Reset Preference Shares, Series 5 (Series 5 Shares) (TSX: CPX.PR.E) of the Conversion Privilege and Dividend Rate Notice.

Subject to certain conditions, beginning on May 31, 2023 and ending at 5:00 p.m. (Toronto time) on June 15, 2023, each registered holder of Series 5 Shares will have the right to elect to convert any or all of their Series 5 Shares into an equal number of Cumulative Floating Rate Preference Shares, Series 6 (Series 6 Shares) by delivering an Election Notice to the Corporation.

If Capital Power does not receive an Election Notice from a holder of Series 5 Shares during the time fixed therefor, then the Series 5 Shares shall be deemed not to have been converted (except in the case of an Automatic Conversion, see below). Holders of the Series 5 Shares and the Series 6 Shares will have the opportunity to convert their shares again on June 30, 2028, and every five years thereafter as long as the shares remain outstanding.

Effective June 30, 2023, on May 31, 2023, the Annual Fixed Dividend Rate for the Series 5 Shares was set for the next five-year period at 6.63100%. Effective June 30, 2023, on May 31, 2023, the Floating Quarterly Dividend Rate for the Series 6 Shares was set for the first Quarterly Floating Rate Period (being the period from and including June 30, 2023, to but excluding September 30, 2023) at 1.94410%. The Floating Quarterly Dividend Rate will be reset every quarter.

The Series 5 Shares are issued in “book entry only” form and, as such, the sole registered holder of the Series 5 Shares is CDS Clearing and Depository Services Inc. (CDS). All rights of beneficial holders of Series 5 Shares must be exercised through CDS or the CDS participant through which the Series 5 Shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series 5 Shares into Series 6 Shares is 3:00 p.m. (MT) / 5:00 p.m. (ET) on June 15, 2023. Any Election Notices received after this deadline will not be valid. As such, beneficial holders of Series 5 Shares who wish to exercise their rights to convert their shares should contact their broker or other intermediary for more information and it is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary with time to complete the necessary steps.

After June 15, 2023, (i) if Capital Power determines that there would remain outstanding on June 30, 2023, less than 1,000,000 Series 5 Shares, all remaining Series 5 Shares will be automatically converted into Series 6 Shares on a one-for-one basis effective June 30, 2023 (an Automatic Conversion); or (ii) if Capital Power determines that there would remain outstanding after June 30, 2023, less than 1,000,000 Series 6 Shares, no Series 5 Shares will be permitted to be converted into Series 6 Shares effective June 30, 2023. There are currently 8,000,000 Series 5 Shares outstanding.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of the Series 6 Shares effective upon conversion. Listing of the Series 6 Shares is subject to the Capital Power fulfilling all the listing requirements of the TSX and upon approval, the Series 6 Shares will be listed on the TSX under the trading symbol CPX.PR.F.

For more information on the terms of, rates and risks associated with an investment in, the Series 5 Shares and the Series 6 Shares, please see Capital Power’s prospectus supplement dated March 7, 2013 which is available on sedar.com or on Capital Power’s website at capitalpower.com.

CPX.PR.E was issued as a FixedReset, 4.50%+315, that commenced trading 2013-3-14 after being announced 2013-3-5. The issue reset to 5.238% in 2018 and there was no conversion. It is tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns.

Intact Financial Corporation has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding Non-cumulative Rate Reset Class A Shares Series 7 of IFC (the “Series 7 Preferred Shares”) (TSX: IFC.PR.G) on June 30, 2023. As a result, subject to certain conditions set out in the prospectus supplement dated May 22, 2018 to the short form base shelf prospectus dated November 15, 2017 (the “Prospectus”), relating to the issuance of the Series 7 Preferred Shares, the holders of the Series 7 Preferred Shares will have the right, at their option, to elect to convert all or any of their Series 7 Preferred Shares into Non-cumulative Floating Rate Class H Shares Series 8 of IFC (the “Series 8 Preferred Shares”) on a one-for-one basis on June 30, 2023. Holders who do not exercise their right to convert their Series 7 Preferred Shares into Series 8 Preferred Shares on such date will retain their Series 7 Preferred Shares, unless automatically converted in accordance with the conditions below.

With respect to any Series 7 Preferred Shares that may remain outstanding after June 30, 2023, commencing as of such date, holders thereof will be entitled to receive fixed non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of IFC. The annual dividend rate for the Series 7 Preferred Shares for the five-year period from and including June 30,2023 to but excluding June 30, 2028, will be 6.012%, as determined in accordance with the terms of the Series 7 Preferred Shares.

With respect to any Series 8 Preferred Shares that may be issued on June 30, 2023, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of IFC. The dividend rate for the Series 8 Preferred Shares for the 3-month floating rate period from and including June 30, 2023, to but excluding September 30, 2023, will be 1.79287% (7.113% on an annualized basis), as determined in accordance with the terms of the Series 8 Preferred Shares (the “Floating Quarterly Dividend Rate”). The Floating Quarterly Dividend Rate will be reset every quarter.

The foregoing conversion right for the Series 7 Preferred Shares is subject to the conditions that: (i) if IFC determines that there would be less than 1,000,000 Series 7 Preferred Shares outstanding on June 30, 2023, then all remaining Series 7 Preferred Shares will automatically be converted into an equal number of Series 8 Preferred Shares on June 30, 2023, and (ii) alternatively, if IFC determines that there would be less than 1,000,000 Series 8 Preferred Shares outstanding on June 30, 2023, then no Series 7 Preferred Shares will be converted into Series 8 Preferred Shares. In either case, IFC will give written notice to that effect to any registered holders of Series 7 Preferred Shares on or before June 22, 2023.

The Series 7 Preferred Shares are issued in “book entry only” form and must be purchased or transferred through a participant in the CDS depository service (“CDS Participant”). All rights of holders of Series 7 Preferred Shares must be exercised through CDS or the CDS Participant through which the Series 7 Preferred Shares are held. The deadline for the registered shareholder of any Series 7 Preferred Shares to provide notice of exercise of the right to convert is 5:00 p.m. (ET) on June 15, 2023. Any notices received after this deadline will not be valid. As such, beneficial holders of Series 7 Preferred Shares who wish to exercise their right to convert their shares during the conversion period, which will run from Wednesday, May 31, 2023 until 5:00 p.m. (ET) on Thursday, June 15, 2023, should contact their broker or other intermediary for more information and it is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary with time to complete the necessary steps.

Holders of the Series 7 Preferred Shares and the Series 8 Preferred Shares (if issued on June 30, 2023) will have the opportunity to convert their shares again on June 30, 2028, and every five years thereafter as long as the shares remain outstanding. Subject to certain conditions described in the Prospectus, IFC may redeem the Series 7 Preferred Shares, in whole or in part, on June 30, 2028, and on June 30 every five years thereafter and may redeem the Series 8 Preferred Shares (if issued), in whole or in part, on any date after June 30, 2023.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 8 Preferred Shares effective on conversion. Listing of the Series 8 Preferred Shares is subject to IFC fulfilling all the listing requirements of the TSX.

For more information on the terms of, and risks associated with an investment in, the Series 7 Preferred Shares and the Series 8 Preferred Shares, please see IFC’s prospectus supplement dated May 22, 2018, which is available on www.sedar.com.

IFC.PR.G was issued as a FixedReset, 4.90%+255, that commenced trading 2018-5-29 after being announced 2018-5-17. It is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

Thanks to Assiduous Reader CanSiamCyp for bringing this to my attention.

Manulife Financial Coporation has announced (although not yet on their website):

the applicable dividend rates for its Non-cumulative Rate Reset Class 1 Shares Series 25 (the “Series 25 Preferred Shares”) (TSX: MFC.PR.Q) and Non-cumulative Floating Rate Class 1 Shares Series 26 (the “Series 26 Preferred Shares”).

With respect to any Series 25 Preferred Shares that remain outstanding after June 19, 2023, holders thereof 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 and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on June 20, 2023, and ending on June 19, 2028, will be 5.94200% per annum or $0.371375 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at May 23, 2023, plus 2.55%, as determined in accordance with the terms of the Series 25 Preferred Shares.

With respect to any Series 26 Preferred Shares that may be issued on June 20, 2023 in connection with the conversion of the Series 25 Preferred Shares into the Series 26 Preferred Shares, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, calculated on the basis of the actual number of days elapsed in each quarterly floating rate period divided by 365, as and when declared by the Board of Directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the three-month period commencing on June 20, 2023, and ending on September 19, 2023, will be 1.76665% (7.00900% on an annualized basis) or $0.441663 per share, being equal to the sum of the three-month Government of Canada Treasury bill yield as at May 23, 2023, plus 2.55%, as determined in accordance with the terms of the Series 26 Preferred Shares.

Beneficial owners of Series 25 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 5, 2023. The news release announcing such conversion right was issued on April 25, 2023 and can be viewed on SEDAR or Manulife’s website. Conversion inquiries should be directed to Manulife’s Registrar and Transfer Agent, TSX Trust Company, at 1–800–783–9495.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 26 Preferred Shares effective upon conversion. Listing of the Series 26 Preferred Shares is subject to Manulife fulfilling all the listing requirements of the TSX and, upon approval, the Series 26 Preferred Shares will be listed on the TSX under the trading symbol “MFC.PR.S”.

MFC.PR.Q was issued as a FixedReset, 4.70%+255, that commenced trading 2018-2-20 after being announced 2018-2-12. It is tracked by HIMIPref™ and has been assigned to the FixedReset (Insurance) sub-index.

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

As noted by Assiduous Reader stusClues DBRS has announced that it:

confirmed Brookfield Property Partners L.P.’s (BPP) Issuer Rating and Senior Unsecured Debt rating at BBB (low). DBRS Morningstar also confirmed the ratings on Brookfield Property Finance ULC’s Senior Unsecured Notes and Brookfield Office Properties Inc.’s Senior Unsecured Notes at BBB (low) and Brookfield Office Properties Inc.’s Cumulative Redeemable Preferred Shares, Class AAA at Pfd-3 (low). All trends are Stable. The ratings are based on the credit risk profile of the consolidated entity, including BPP and its subsidiaries (collectively, BPY or the Partnership).

The confirmations and Stable trends consider strong operating results in BPY’s core retail and LP investments segments (i.e., hotels), headwinds facing the office sector, the current elevated interest rate environment and BPY’s variable rate debt exposure, and the recent reorganization of Brookfield Corporation (Brookfield) and other recent transactions whereby BPY acquired LP interests in several real estate funds and other investment interests for $3.1 billion through the issuance of junior preferred shares of Brookfield BPY Holdings Inc. and a non-interest-bearing note. The Stable trends also consider DBRS Morningstar’s resulting updated expectations for BPY’s financial risk metrics. DBRS Morningstar expects that in the near to medium term, BPY will operate with total debt-to-EBITDA and EBITDA interest coverage in the mid-15 times (x) range and 1.1x range, respectively.

The ratings continue to be supported by (1) BPY’s market position as a preeminent global real estate company; (2) high-quality assets, particularly BPY Core Office and Retail segment, with long-term leases to large, recognizable investment-grade-rated tenants; (3) superior diversification, in particular by property, tenant, and geography; and (4) DBRS Morningstar’s view of implicit support from Brookfield. The ratings continue to be constrained by BPY’s weak financial risk assessment as reflected by both its highly leveraged balance sheet (total debt-to-EBITDA of 17.0x for the last 12 months ended December 31, 2022 (LTM)) and low EBITDA interest coverage (1.29x LTM); a riskier retail leasing profile in terms of lease maturities and counterparty risk relative to BPY’s Core Office segment; a higher-risk opportunistic Limited Partnership Investments segment composed primarily of hotel, office, retail, and alternative assets; and DBRS Morningstar’s assessment of the unmitigated structural subordination of the Senior Unsecured Debt at the BPP level relative to a material amount of debt at its operating subsidiaries.

DBRS Morningstar would consider a negative rating action should BPY’s total debt-to-EBITDA not improve as expected such that it remains above 16.0x, or if BPY’s EBITDA interest coverage deteriorates more than expected such that it declines below 1.0x, on a sustained basis, all else equal, or if DBRS Morningstar changes its views on the level and strength of implicit support provided by Brookfield. On the other hand, DBRS Morningstar would consider a positive rating action should DBRS Morningstar’s outlook for BPY’s total debt-to-EBITDA improve to 13.0x or better.

Affected issues are BPO.PR.A, BPO.PR.C, BPO.PR.E, BPO.PR.G, BPO.PR.I, BPO.PR.N, BPO.PR.P, BPO.PR.R and BPO.PR.T.

BPO issues have been absolutely hammered in the past three months, as discussed in the post The Woes of BPO.

I don’t usually report confirmations … but on this one I’m making an exception!

Assiduous Readers will remember that on 2023-4-30, RAV4guy commented:

CU has changed the rate that it is paying on CU.PR.C. After paying dividends at the rate of 5.20% in September and December of 2022 the rate was changed for the March 2023 payment to 5.196%. I found no explanation on CU’s website or SEDAR. The issue in referred to as a 5.196% preferred for the June payment as well. With 13M shares issued this saves CU $13,000/year. If one owns 1,000 shares this costs you $1.00/year so it is not worthwhile to spend any time asking CU why they changed what was originally announced.

This is odd behaviour by CU. With my limited experience i do not recall any company revising the rate paid after two payments were made. Pay what you announce you will pay.

… and I responded (links edited for ease of reading):

I have sent the following eMail to CU, using their Contact Form:

I note that in your July, 2022, dividend notice (LINK ) and October, 2022 notice (LINK) the issue trading as CU.PR.C is referred to as “Series Y 5.20%” and declared dividends of 0.32500, while in January, 2023 (LINK) and April, 2023 (LINK) it is referred to as “Series Y 5.196%” and declared dividends of 0.32475.

You will recall that in May, 2022, you announced (LINK)that the rate had been reset to 5.20% in accordance with the prospectus.

What is the reason for this reduction in dividend? Has any announcement been made to alert investors about the change?

Sincerely,

It took a while, and I had to send a second request, but today Investor Relations found some time in their busy schedules to get back to me via eMail:

Thanks for your note. What you’ve picked up on is a disclosure discrepancy based on how we round across our various documents where these figures are quoted. The dividend figures in our press releases, for example, are generally rounded to 3 decimal places, while our financial statements and other summaries are often rounded to 2 decimal places. The dividend was rounded to two decimal points when in fact it should be stated to three decimal points. We corrected this in 2023.

As a result of the rounding to two decimal points in 2022 we paid a slightly higher amount on the dividend than the amount formally owed as a result of the repricing. Going forward in 2023, with the correction to three decimal points, we are now paying the exact amount for the repriced dividend.

Kind Regards,

… and I got back to them, via normal eMail:

Will you be issuing a press release to notify the investing public of this error, or will it continue to take over a week to receive an answer when such a straightforward question is asked?

In addition, will press releases announcing future dividend adjustments for such issues include disclosure of whatever rounding convention you have decided to adopt at that time?

This prompted a ‘phone call in which I was told, basically: it’s not material, we’re not going to do anything at all.

This is not acceptable behaviour. I hold strong views on integrity. I consider that “integrity” means something more than not telling deliberate lies. Integrity means that you own up to your errors and fix them. As I said during the ‘phone call, they issued three successive press releases on this issue with false information. And it goes beyond that: these (slightly) excessive dividends were actually paid to shareholders. That means that somebody – presumably the CFO, but that’s just a guess – went to the Board of Directors and claimed they owed $X for dividends on this issue, paid at a rate of $Y per share. And the directors signed off on this false claim. The Canadian Utilities website continues to claim – falsely – that:

On May 24, 2022, Canadian Utilities reset the quarterly dividend rate on its Series Y Preferred Shares for the five-year period from and including June 1, 2022 to but excluding June 1, 2027. The fixed dividend will be paid as and when declared by the Board of Directors of Canadian Utilities based on an annual dividend rate of $1.299 per share or 5.20% per annum.

Well, 5.20% would be a dividend of 1.30 per annum, obviously, and current press releases refer to the rate as “5.196%”. I will note that the prospectus specifies that:

“Annual Fixed Dividend Rate” means, for any Subsequent Fixed Rate Period, the annual rate of interest (expressed as a percentage rounded to the nearest one hundred–thousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the Government of Canada Yield on the applicable Fixed Rate Calculation Date and 2.40%.

They did get it right in the 2022 Annual Report:

Preferred Shares
On May 24, 2022, Canadian Utilities reset the quarterly dividend rate on its Series Y Preferred Shares for the five year period from and including June 1, 2022 to May 31, 2027. The fixed dividend will be paid as and when declared by the Board of Directors of Canadian Utilities based on an annual dividend rate of 5.196 per cent.

The directors nominated in the proxy circular are:

• MATTHIAS F. BICHSEL, PhD
• LORAINE M. CHARLTON
• ROBERT J. HANF, K.C.
• KELLY C. KOSS-BRIX
• ROBERT J. NORMAND
• ALEXANDER J. POURBAIX
• HECTOR A. RANGEL
• LAURA A. REED
• ROBERT J. ROUTS, PhD
• NANCY C. SOUTHERN
• LINDA A. SOUTHERN-HEATHCOTT
• ROGER J. URWIN, PhD, C.B.E.
• WAYNE G. WOUTERS, PC, OC

These individuals should make their irritation known and order a press release. It’s a minor screw-up, but it’s still a screw-up … and one that was made in three successive press releases … and one that went to the board which complacently signed off on it. A great company will have a culture of ‘if you fuck up, you ‘fess up’ and that cultural imperative must come, relentlessly, from the top. Even on little things.

The post on PrefBlog announcing the dividend reset has been corrected.

Enbridge Inc. has announced:

that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series F (Series F Shares) (TSX: ENB.PR.F) on June 1, 2023. As a result, subject to certain conditions, the holders of the Series F Shares have the right to convert all or part of their Series F Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series G of Enbridge (Series G Shares) on June 1, 2023. Holders who do not exercise their right to convert their Series F Shares into Series G Shares will retain their Series F Shares.

The foregoing conversion right is subject to the conditions that: (i) if Enbridge determines that there would be less than 1,000,000 Series F Shares outstanding after June 1, 2023, then all remaining Series F Shares will automatically be converted into Series G Shares on a one-for-one basis on June 1, 2023; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series G Shares outstanding after June 1, 2023, no Series F Shares will be converted into Series G Shares. There are currently 20,000,000 Series F Shares outstanding.

With respect to any Series F Shares that remain outstanding after June 1, 2023, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The new annual dividend rate applicable to the Series F Shares for the five-year period commencing on June 1, 2023 to, but excluding, June 1, 2028 will be 5.538 percent, being equal to the five-year Government of Canada bond yield of 3.028 percent determined as of today plus 2.51 percent in accordance with the terms of the Series F Shares.

With respect to any Series G Shares that may be issued on June 1, 2023, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of Enbridge. The dividend rate applicable to the Series G Shares for the three-month floating rate period commencing on June 1, 2023 to, but excluding, September 1, 2023 will be 1.75430 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 4.45 percent plus 2.51 percent in accordance with the terms of the Series G Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series F Shares who wish to exercise their right of conversion during the conversion period, which runs from May 2, 2023 until 5:00 p.m. (EST) on May 17, 2023, should communicate as soon as possible with their broker or other intermediary for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary time to complete the necessary steps. Any notices received after this deadline will not be valid.

ENB.PR.F was issued as a 4.00%+251 FixedReset that commenced trading 2012-1-18 after being announced 2012-1-9. It reset to 4.689% in 2018. I recommended against conversion; there was no conversion. It is tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns.

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

National Bank of Canada has announced:

the dividend rates applicable to the Non-Cumulative 5‑Year Rate Reset First Preferred Shares, Series 40 Non-Viability Contingent Capital (NVCC) (the “Series 40 Shares”) and the Non-Cumulative Floating Rate First Preferred Shares, Series 41 (NVCC) (the “Series 41 Shares”).

Holders of Series 40 Shares, should any remain outstanding after May 15, 2023, 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 the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the five-year period commencing on May 16, 2023, and ending on May 15, 2028, will be 5.818%, being equal to the sum of the five-year Government of Canada Bond yield (3.238%) plus 2.58%, as determined in accordance with the terms of the Series 40 Shares.

Holders of Series 41 Shares, should any be issued on May 15, 2023, will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on May 16, 2023, and ending on August 15, 2023, will be 7.017%, being equal to the sum of the 90-day Government of Canada Treasury Bill yield (4.437%) plus 2.58%, calculated on the basis of actual number of days elapsed in such quarterly floating rate period divided by 365, as determined in accordance with the terms of the Series 41 Shares.

Holders of the Series 40 Shares have, subject to certain conditions, the right to convert all or part of their Series 40 Shares on a one-for-one basis into Series 41 Shares on May 15, 2023.

Beneficial owners of Series 40 shares who wish to exercise their conversion right 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 May 1, 2023, at 5:00 p.m. (EDT).

NA.PR.E is a FixedReset, 4.60%+258, NVCC-Compliant, that commenced trading 2018-1-22 after being announced 2018-1-12. It is tracked by HIMIPref™ and assigned to the FixedReset (Discount) subindex.

Thanks to niagara for bringing this to my attention.. And thanks also to Assiduous Reader MO!

Morgan Meighen & Associates has announced:

Canadian General Investments, Limited (“CGI”) announced today that it has provided notice to holders of its $75,000,000 3.75% Cumulative Redeemable Class A Preference Shares, Series 4 (the “Series 4 Shares”) that in accordance with the terms of the Series 4 Shares it will redeem all of the issued and outstanding Series 4 Shares on June 12, 2023 (the “Redemption Date”), for a price of $25.00 per Series 4 Share plus all accrued and unpaid dividends (from and including the last scheduled dividend payment date, March 15, 2023, to, but excluding, the Redemption Date, and being in the amount of $0.22860 per share).

CGI.PR.D is a SplitShare, 10-Year Retractible, 3.75%, that commenced trading 2013-5-30 after being announced 2013-4-29. The issue has been tracked by HIMIPref™ and despite its excellent credit quality, has been relegated to the Scraps -SplitShares subindex on volume concerns.

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