Category: Issue Comments

Pembina Pipeline Corporation has announced:

that it has closed its previously announced offering of $225 million aggregate principal amount of 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2 (the “Series 2 Notes”) due June 6, 2055 (the “Offering”). The Series 2 Notes were offered through a syndicate of underwriters, co-led by CIBC Capital Markets, BMO Capital Markets and Scotiabank, under Pembina’s short form base shelf prospectus dated December 13, 2023, as supplemented by a prospectus supplement dated October 8, 2025.

As previously announced, Pembina intends to use the net proceeds of the Offering to fund the redemption of all of its outstanding Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 9 (TSX: PPL.PR.I) (the “Series 9 Class A Preferred Shares”) on December 1, 2025 (the “Redemption Date”) at a price equal to $25.00 per Series 9 Class A Preferred Share (the “Redemption Price”), less any tax required to be deducted or withheld by the Company and for general corporate purposes. The aggregate Redemption Price to Pembina will be $225 million.

Pembina previously announced that the dividend payable on December 1, 2025, to the holders of the Series 9 Class A Preferred Shares of record on November 3, 2025, will be $0.268875 per Series 9 Class A Preferred Share. This will be the final quarterly dividend on the Series 9 Class A Preferred Shares. Upon payment of the December 1, 2025 dividend, there will be no accrued and unpaid dividends on the Series 9 Class A Preferred Shares as at the Redemption Date.

The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Series 9 Class A Preferred Shares in accordance with the terms of the Series 9 Class A Preferred Shares, as set out in the Company’s articles of amalgamation dated October 2, 2017. For non-registered holders of Series 9 Class A Preferred Shares, no further action is required, however, they should contact their broker or other intermediary with any questions regarding the redemption process for the Series 9 Class A Preferred Shares in which they hold a beneficial interest. The Company’s transfer agent for the Series 9 Class A Preferred Shares is Computershare Investor Services Inc. Questions regarding the redemption process may also be directed to Computershare at 1-800-564-6253 or by email to corporateactions@computershare.com.

PPL.PR.I was issued as a FixedReset, 4.75%+391, that commenced trading 2015-4-10 after being announced 2015-3-31. It reset to 4.302% effective 2020-12-1 and there was no conversion. It is tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

It’s nice to get some more confirmation (after the recent TRP.PR.G refunding) that the Canadian preferred share market continues to be cheap!

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

Brompton Funds has announced (on 2025-10-6):

Life & Banc 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 October 27, 2025 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 of the Toronto Stock Exchange (the “TSX”).

Class A shareholders will continue to receive regular monthly cash distributions targeted to be $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 10%. The Fund provides a distribution reinvestment plan, on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.

Over the last 10 years, the class A shares have delivered a 20.5% per annum total return based on net asset value, outperforming the S&P/TSX Capped Financials Total Return Index by 6.8% per annum and the S&P/TSX Composite Total Return Index by 8.7% per annum.(1) Since inception, class A shareholders have received cash distributions of $20.95 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 52%.(2)

The class A shares are expected to commence trading on an ex-split basis at the opening of trading on October 27, 2025. 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 invests on an approximately equally weighted basis in a 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 harms the credit quality of the preferreds by increasing the cash drag (due to increased distributions to the Capital Units due to the split) and by decreasing the Asset Coverage ratio. However, with a Whole Unit NAVPU of 22.31 as of 2025-10-9, there is no immediate cause for alarm.

My guess is that they’re doing this to increase the leverage provided by owning the Capital Units, given my assumption that this is what these shareholders want.

Brompton Funds has announced (on 2025-10-6):

Brompton Split Banc 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 October 27, 2025 will receive 17 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 regular monthly cash distributions targeted to be $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 17%. The Fund provides a distribution reinvestment plan, on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.

Over the last 10 years, the class A shares have delivered a 18.4% per annum total return based on net asset value, outperforming the S&P/TSX Equal Weight Diversified Banks Total Return Index by 5.1% per annum and the S&P/TSX Composite Total Return Index by 6.6% per annum.(1) Since inception, class A shareholders have received cash distributions of $23.45 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 55%.(2)

The class A shares are expected to commence trading on an ex-split basis at the opening of trading on October 27, 2025. 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 invests on an approximately equally weighted basis in a portfolio (the “Portfolio”) of common shares of the six largest Canadian banks: Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of Montreal. In addition, the Fund may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purpose of enhanced diversification and return potential.

This harms the credit quality of the preferreds by increasing the cash drag (due to increased distributions to the Capital Units due to the split) and by decreasing the Asset Coverage ratio. However, with a Whole Unit NAVPU of 24.15 as of 2025-10-9, there is no immediate cause for alarm.

My guess is that they’re doing this to increase the leverage provided by owning the Capital Units, given my assumption that this is what these shareholders want.

Update, 2025-12-2: Brompton has announced a treasury offering of preferreds only:

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

The sales period for this offering is expected to end on Wednesday, December 3, 2025. The offering is expected to close on or about December 10, 2025 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 $10.40 per Preferred Share to yield 6.0%.
(1) The closing price on the TSX for the Preferred Shares on December 1, 2025 was $10.54. 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 $0.15625 per Preferred Share (6.25% per annum on the original $10.00 issue price), and to return the original issue price to holders of Preferred Shares on November 29, 2027.

The Fund has declared aggregate dividends on the Preferred Shares of $10.22 per Preferred Share, representing 80 consecutive quarterly dividends since inception on November 16, 2005.

Based on the most recently calculated net asset value per unit of the Fund on November 27, 2025, the Preferred Shares have downside protection from a decline in the value of the Fund’s portfolio of approximately 57%. The Preferred Shares have a Morningstar DBRS rating of Pfd-3.

The Fund invests on an approximately equally weighted basis in a portfolio (the “Portfolio”) of common shares of the six largest Canadian banks: Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of Montreal. In addition, the Fund may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purpose of enhanced diversification and return potential.

On October 6, TC Energy Corporation announced:

that TransCanada PipeLines Limited (TCPL) is considering an offering of U.S. Junior Subordinated Notes (Notes).

If a successful offering is completed, the Company intends to use the net proceeds to redeem its issued and outstanding Cumulative Redeemable First Preferred Shares, Series 11 (TSX:TRP.PR.G) pursuant to their terms, to reduce indebtedness as well as for general corporate purposes. There is no certainty that TCPL will ultimately complete the offering being considered or as to the timing or terms on which such an offering might be completed.

It is expected that, if the offering is commenced, the Notes would be issued by way of a prospectus supplement to TCPL’s short form base shelf prospectus dated Dec. 5, 2024 included in its registration statement on Form F-10 filed with the U.S. Securities and Exchange Commission (SEC). A copy of such prospectus supplement will be available free of charge on the SEC website at http://www.sec.gov or potential investors may request such prospectus supplement from Morgan Stanley & Co. LLC toll free at +1 (866) 718-1649, BofA Securities, Inc. toll free at +1 (800) 294-1322, J.P. Morgan Securities LLC collect at +1 (212) 834-4533, RBC Capital Markets, LLC toll free at +1 (866) 375-6829 or Wells Fargo Securities LLC toll free at +1 (800) 645-3751.

This morning, we learned:

On October 6, 2025, TransCanada PipeLines Limited entered into an underwriting agreement with major financial institutions including Morgan Stanley and BofA Securities for the issuance of 6.250% Junior Subordinated Notes due 2085.

… which may not be huge news, but it’s a step up from “considering”!

The company announced today:

that TransCanada PipeLines Limited (TCPL) has closed an offering of US$350 million of 6.250 per cent Fixed-for-Life Junior Subordinated Notes due Nov. 1, 2085 (Notes). The Notes were offered through a syndicate of underwriters, co-led by Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC.

As previously announced, the Company intends to use the net proceeds to redeem (Redemption) its issued and outstanding Cumulative Redeemable First Preferred Shares, Series 11 (Series 11 Shares) (TSX:TRP.PR.G) on Nov. 28, 2025 (Redemption Date) at a price equal to $25.00 per share (Redemption Price), to reduce indebtedness as well as for general corporate purposes. The Company provided notice of the Redemption today to the sole registered holder of the Series 11 Shares in accordance with their terms.

Subject to board approval, the Company expects to declare a final quarterly dividend of $0.2094375 per Series 11 Share, for the period up to but excluding Nov. 28, 2025, payable on Nov. 28, 2025 to shareholders of record on Nov. 17, 2025. This would be the final dividend on the Series 11 Shares and, as the Redemption Date is also a dividend payment date, the Redemption Price will not include any accrued and unpaid dividends. Subsequent to the Redemption Date, the Series 11 Shares will cease to be entitled to dividends and will be delisted from the Toronto Stock Exchange.

Non-registered holders of Series 11 Shares should contact their broker or other intermediary for information regarding the redemption process for the Series 11 Shares in which they hold a beneficial interest.

The Notes were issued by way of a prospectus supplement dated Oct. 6, 2025 to TCPL’s short form base shelf prospectus dated Dec. 5, 2024 (collectively, the Prospectus) included in its registration statement on Form F-10 filed with the U.S. Securities and Exchange Commission.

TRP.PR.G was issued as a FixedReset, 3.80%+296, that commenced trading 2015-3-2 after being announced 2015-2-23. It reset to 3.351% effective 2020-11-30 and there was no conversion. The issue is tracked by HIMIPref™ and is assigned to the Scraps – FixedReset-Discount subindex.

The market’s been pricing this in for a while, with remarkably similar spreads derived from Implied Volatility Analysis for the past while, despite the perplexing and annoying negative slope of the correlation (on which the analysis sets a floor of 1%, since lower values don’t make any sense. There are other things going on, like the market betting heavily that high-reset issues have an outsized probability of redemption):

Still, it’s nice to get some reassurance from TRP that yes, the preferred share market is still cheap compared to alternative sources of funding!

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

Partners Value Split Corp. has announced:

y its intention to redeem all of its 5,996,800 outstanding Class AA Preferred Shares, Series 9 (“Preferred Shares, Series 9”) for cash on October 6, 2025 (the “Redemption Date”) in accordance with the terms of the Preferred Shares, Series 9.

The redemption price per Preferred Share, Series 9 will be equal to C$25.00 per share plus accrued and unpaid dividends of C$0.12 per share to October 5, 2025, representing a total redemption price of C$25.12 per share (the “Redemption Price”).

Notice has been delivered to holders of the Preferred Shares, Series 9 in accordance with the terms of the Preferred Shares, Series 9. From and after the Redemption Date, the Preferred Shares, Series 9 will cease to be entitled to dividends or any other participation in any distribution of the assets of the Company and the holders thereof shall not be entitled to exercise any of their rights as shareholders in respect thereof except to receive the Redemption Price (less any tax required to be deducted and withheld by the Company). After the redemption of the Preferred Shares, Series 9, the Company will consolidate the existing capital shares held by Partners Value Investments Inc. so that there are an equal number of preferred shares and capital shares outstanding.

The scheduled maturity date was 2026-02-28.

PVS.PR.G is a Split Share, 7-year, 4.90% issue that commenced trading 2018-11-26 after being announced 2018-11-15. It is tracked by HIMIPref™ and assigned to the SplitShare subindex.

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

The Toronto-Dominion Bank has announced:

that it will exercise its right to redeem all of its 8,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 9 (Non-Viability Contingent Capital) (the “Series 9 Shares”) on October 31, 2025 at the price of $25.00 per Series 9 Share for an aggregate total of approximately $200 million. The redemption has been approved by the Office of the Superintendent of Financial Institutions.

On August 28, 2025, TD announced that dividends of $0.202625 per Series 9 Share had been declared as payable on and after October 31, 2025 to shareholders of record at the close of business on October 10, 2025. These will be the final dividends on the Series 9 Shares, and will be paid in the usual manner on October 31, 2025 as previously announced. After October 31, 2025, the Series 9 Shares will cease to be entitled to dividends and the only remaining rights of holders of such shares will be to receive payment of the redemption amount.

Beneficial holders who are not directly the registered holder of Series 9 Shares should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds. Inquiries should be directed to our Registrar and Transfer Agent, TSX Trust Company, at 1-800-387-0825 (or in Toronto 416-682-3860).

TD.PF.E is a FixedReset, 3.70%+287, that commenced trading 2015-4-24 after being announced 2015-4-15. Notice of extension was provided on 2020-9-17. TD.PF.E will reset at 3.242% effective 2020-10-31 and there was no conversion. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Premium) subindex.

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

Great-West Lifeco Inc. has announced:

the closing of its previously announced offering of 8,000,000 5.70% Non-Cumulative First Preferred Shares, Series Z (the “Series Z 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 Z Shares will be listed for trading on the Toronto Stock Exchange under the symbol “GWO.PR.Z”.

GWO.PR.Z is a Straight Perpetual paying 5.70%, announced 2025-9-17. It has been assigned to the PerpetualPremium sub-index.

Quadravest has announced:

North American Financial 15 Split Corp. (the “Company”) announces that in keeping with current market rates for preferred shares with similar terms, the Preferred Share (“FFN.PR.A”) dividend rate for the fiscal year commencing December 1, 2025 will be set at 7.50% (previously 8.75%). Monthly payments to FFN.PR.A will be $0.06250 per share for an annual yield of 7.50% on their $10.00 redemption value.

The Company invests in an actively managed, high-quality portfolio 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.

The minimum rate until maturity 2029-12-1 remains at 7.00%, as announced last year.

Thanks to Assiduous Readers SK and niagara for bringing this to my attention!

Update, 2025-09-25: It is of interest to note that the yield to maturity 2029-12-1 was 5.11% as of the close given the following specifications:
i) bid price of 10.83
ii) end price of 10.00
iii) three more dividends at the annual rate of 8.75%
iv) one year’s dividends at the annual rate of 7.50%
v) remaining dividends at the minimum annual rate of 7.00%

Quadravest has announced:

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 September 26, 2025 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 $27.57 per share.

The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on September 26, 2025. 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 next reported net asset value per unit as at September 30, 2025.

The Company invests in a high quality portfolio 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.

Given that the 2025-9-15 NAVPU was 22.03, this move will reduce the figure to about 20.00.

They further announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce that the minimum annual dividend rate for the FTN.PR.A Preferred Shares will increase to 6.00% from 5.50% for the new five-year term effective December 1, 2025. The payment rate that may be reset annually, subject to the five-year minimum, will be set at 7.25% (previously 8.50%) per annum effective December 1, 2025 based on the $10.00 repayment value.

The Preferred shareholders have received a total of $12.69 per share in distributions since inception. The dividend policy for the FTN Class A Shares will remain unchanged at the current
targeted rate of $0.12570 per month, or $1.5084 per annum. As previously announced on February 28, 2025, the Company has extended the termination date of the Company a further five-year period from December 1, 2025 to December 1, 2030. In relation to the term extension, the Company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 28, 2025 net asset value per unit. Alternatively, shareholders may also choose to sell their shares in the market at any time, realizing the then-current trading price, or shareholders may take no action and continue to hold their shares.

The Company invests in a high quality portfolio 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.

This surprises me greatly; the terms seem far too generous. The issue closed (NBBO) at 10.80-82, down fractionally from it previous range in the mid- to high-80s. I’ll work out the projected yield properly tomorrow, but it seems to me that the result (from a starting price of 10.80) will be about 5% [one year at $0.725 wiped out by expected capital loss, leaving four years at 6% = 24%, over five years = about maybe 5%. The Capital Unitholders might well kick at how the preferred shareholders are getting too much, but they will be mollified by the 10% hike in dividends resultant from the stock split (for as long as the NAVPU stays over $15!). Assuming, of course, that they don’t realize that it’s all their money and they don’t need to be nicer than they have to be to the preferred shareholders.

So, Assiduous Reader fireseeker was right in the comments to the the September PrefLetter release post and I was wrong. Huh. Well, if I ever decide I need a crystal ball gazer on staff, I know who I’m gonna call!

Thanks to Assiduous Readers SK and niagara for bringing this to my attention!

Update, 2025-09-25: It is of interest to note that the yield to maturity 2030-12-1 was 4.72% as of the close given the following specifications:
i) bid price of 10.80
ii) end price of 10.00
iii) three more dividends at the annual rate of 8.50%
iv) one year’s dividends at the annual rate of 7.50%
v) remaining dividends at the minimum annual rate of 6.00%

Power Corporation of Canada has announced:

the closing of Power Corporation’s offering of 8,000,000 5.75% Non-Cumulative First Preferred Shares, Series H in the capital of Power Corporation (the “Series H 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 H shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “POW.PR.H”. The net proceeds of this offering will be used by Power Corporation for general corporate purposes.

POW.PR.H is a 5.75% Straight Perpetual announced 2025-9-15. It has been added to the PerpetualPremium sub-index.

The issue traded 831,540 shares today in a range of 24.95-12 before closing at 25.10-12. Vital statistics are: