Category: Issue Comments

Quadravest has announced:

Financial 15 Split Corp. (the “Company”) is pleased to announce the Preferred Share dividend rate for the fiscal year beginning December 1, 2021. Monthly payments to the FTN.PR.A Preferred Share will be maintained at $0.05625 per Share for an annual yield of 6.75% on their $10 redemption value. This represents no change from the current rate.

The Company invests in an actively managed, high quality portfolio consisting of 15 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 SachsGroup Inc.
Royal Bank of Canada	Great-West Lifeco Inc.	JP Morgan Chase & Co.
The Toronto-Dominion Bank	CI Financial Corp.	Wells Fargo & Co.

The initial temporary increase in dividend was announced last year.

On September 23, 2020, Quadravest announced:

North American Financial 15 Split Corp. (the “Company”) is pleased to announce the Preferred Share dividend rate for the fiscal year beginning December 1, 2020. Monthlypayments to the FFN.PR.A Preferred Share will be $0.05625 per Share for an annual yield of 6.75% on their $10 redemption value. This is an increase of one and a quarter percent over the current rate.

The Company invests in an actively managed, high quality portfolio consisting of 15 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 / of Canada	Great-West Lifeco Inc.	JP Morgan Chase & Co.
The Toronto-Dominion Bank	CI Financial Corp.	Wells Fargo & Co.

They have further announced (on 2021-10-1):

North American Financial 15 Split Corp. (the “Company”) is pleased to announce the Preferred Share dividend rate for the fiscal year beginning December 1, 2021. Monthly payments to the FFN.PR.A Preferred Share will be maintained at $0.05625 per Share for an annual yield of 6.75% on their $10 redemption value. This represents no
change from the current rate.

The Company invests in an actively managed, high quality portfolio consisting of 15 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	CI Financial Corp.	Wells Fargo & Co.

The Toronto-Dominion Bank has announced (on September 24):

that it will exercise its right to redeem all of its 40,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 14 (Non-Viability Contingent Capital) (the “Series 14 Shares”) on October 31, 2021 at the price of $25.00 per Series 14 Share for an aggregate total of approximately $1 billion.

On August 26, 2021, TD announced that dividends of $0.303125 per Series 14 Share had been declared. These will be the final dividends on the Series 14 Shares, and will be paid in the usual manner on October 31, 2021 to shareholders of record on October 8, 2021, as previously announced. After October 31, 2021, the Series 14 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 14 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, AST Trust Company (Canada), at 1-800-387-0825 (or in Toronto 416-682-3860).

TD.PF.H is a FixedReset, 4.85%+412, NVCC, that commenced trading 2016-9-29 after being announced 2016-8-29. It is a monster issue, the largest in the market, with 40-million shares (=$1-billion p.v.) outstanding.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced (on September 23):

that 37,837 of its Class AAA Preference Shares, Series R (“Series R Shares”) (TSX: BPO.PR.R) and 372,644 of its Class AAA Preference Shares, Series S (“Series S Shares”) (TSX: BPO.PR.S) were tendered for conversion into Series S Shares and Series R Shares, respectively.

Brookfield currently has 8,883,425 Series R Shares and 1,116,575 Series S Shares outstanding. After taking into account all shares tendered for conversion, there would be less than one million Series S Shares outstanding on September 30, 2021, the conversion date. Accordingly, as provided in the share conditions of the Series S Shares, all remaining Series S Shares will be automatically converted into Series R Shares on a one-for-one basis effective on the conversion date. There will be no conversion of Series R Shares into Series S Shares, and holders of Series R Shares will retain their Series R Shares.

Following the automatic conversion, there will be 10,000,000 Series R Shares and no Series S Shares issued and outstanding. Current holders of Series S Shares will receive a dividend of $0.22622 per share payable on September 30, 2021 in respect of the July 1, 2021 to September 30, 2021 floating rate period. If declared, the fixed quarterly dividends on the Series R Shares during the five years commencing October 1, 2021 will be paid at an annual rate of 4.30% ($0.26875 per share per quarter). The Series S Shares will be de-listed from the Toronto Stock Exchange effective as of close of trading on September 30, 2021.

BPO.PR.R was issued as a 5.10%+348 FixedReset that commenced trading 2011-9-2 after being announced 2011-8-25. The issue reset to 4.155% in 2016 and there was an 11% conversion to the FloatingReset BPO.PR.S. BPO.PR.R reset to 4.30% in 2021.

BPO.PR.S is a FloatingReset, Bills+348, that arose via a partial conversion from BPO.PR.R in 2016.

Intact Financial Corporation has announced:

that 58,082 of its 8,405,004 Non-cumulative Rate Reset Class A Shares Series 3 (the “Series 3 Preferred Shares”) were tendered for conversion on September 30, 2021, on a one-for-one basis, into Non-cumulative Floating Rate Class A Shares Series 4 of IFC (the “Series 4 Preferred Shares”) after having taken into account all elections received before the September 15, 2021, 5:00 p.m. (ET) conversion deadline. Further, 886,758 of its 1,594,996 Series 4 Preferred Shares were tendered for conversion on September 30, 2021, on a one-for-one basis, into Series 3 Preferred Shares after having taken into account all elections received before the September 15, 2021, 5:00 p.m. (ET) conversion deadline. As a result of these conversions, less than 1,000,000 Series 4 Preferred Shares would remain outstanding on September 30, 2021. Therefore, no Series 3 Preferred Shares will be converted into Series 4 Preferred Shares, and all of the remaining outstanding Series 4 Preferred Shares will automatically be converted into Series 3 Preferred Shares on the basis of one Series 3 Preferred Share for each Series 4 Preferred Share, on September 30, 2021. IFC will have 10,000,000 Series 3 Preferred Shares issued and outstanding. The Series 3 Preferred Shares will continue to be listed on the Toronto Stock Exchange (“TSX”) under the symbol IFC.PR.C and the additional shares will begin trading on the TSX on September 30, 2021, subject to IFC fulfilling all the listing requirements of the TSX. The Series 4 Preferred Shares will cease trading on the TSX at market open on September 30, 2021 and will be delisted following market close on the same day.

Subject to certain conditions described in IFC’s prospectus supplement dated August 11, 2011, IFC may redeem the Series 3 Preferred Shares, in whole or in part, on September 30, 2026 and on September 30 every five years thereafter, in accordance with the terms described in IFC’s prospectus supplement dated August 11, 2011.

For more information on the terms of, and risks associated with an investment in, the Series 3 Preferred Shares and the Series 4 Preferred Shares, please see IFC’s prospectus supplement dated August 11, 2011 which is available on www.sedar.com.

IFC.PR.C was issued as a FixedReset, 4.20%+266, that commenced trading 2011-8-18 after being announced 2011-8-9. It reset to 3.332% in 2016 and there was a 16% conversion to the FloatingReset IFC.PR.D. IFC.PR.C reset to 3.457% in 2021.

IFC.PR.D is a FloatingReset, Bills+266, that arose via a partial conversion from IFC.PR.C in 2016.

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

Emera Incorporated has announced:

that it has completed its bought deal offering of 9,000,000 Cumulative Redeemable First Preferred Shares, Series L (the “Series L Preferred Shares”) at a price of $25.00 per share for aggregate gross proceeds of $225,000,000. The syndicate of underwriters was led by TD Securities Inc. and CIBC Capital Markets as joint bookrunners, and also included RBC Capital Markets, Scotiabank, BMO Capital Markets and National Bank Financial Inc. The Series L Preferred Shares will be listed on the Toronto Stock Exchange under the symbol EMA.PR.L. The net proceeds of the offering will be used for general corporate purposes.

EMA.PR.L is a 4.60% Straight Perpetual, announced 2021-9-15. It has been assigned to the Scraps PerpetualPremium subindex.

It traded 889,860 shares today in a range of 25.11-68 before closing at 25.61-69.

Brompton Group has announced:

Dividend Growth Split Corp. (the “Company”) is pleased to announce a successful overnight treasury offering of class A shares and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively). Gross proceeds of the offering are expected to be approximately $60.2 million. The offering is expected to close on or about September 28, 2021 and is subject to certain closing conditions. The Company has granted the Agents (as defined below) an over-allotment option, exercisable for 30 days following the closing date of the offering, to purchase up to an additional 15% of the number of Class A Shares and Preferred Shares issued at the closing of the offering.

The Class A Shares were offered at a price of $6.70 per Class A Share for a distribution rate of 17.9% on the issue price, and the Preferred Shares were offered at a price of $10.00 per Preferred Share for a yield to maturity of 5.7%.(1) The closing price on the Toronto Stock Exchange (the “TSX”) for each of the Class A Shares and Preferred Shares on September 21, 2021 was $6.70 and $10.12, 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 per unit of the Company (“Unit”) (calculated as at September 20, 2021), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The syndicate of agents for the offering was led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc., and Scotiabank and includes BMO Capital Markets, Canaccord Genuity Corp., Hampton Securities Limited, TD Securities Inc., Raymond James Ltd., iA Private Wealth Inc., Echelon Wealth Partners Inc., Richardson Wealth Limited, Manulife Securities Incorporated and Research Capital Corporation.

The Company invests in a portfolio (the “Portfolio”) consisting primarily of equity securities of Canadian dividend growth companies. In addition, the Company may hold up to 20% of the total assets of the Portfolio in global dividend growth companies for diversification and improved return potential, at the discretion of Brompton Funds Limited (the “Manager”). In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing, each dividend growth company included in the Portfolio must have (i) a market capitalization of at least CDN$2.0 billion; and (ii) a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.

Enbridge Inc. has announced (on September 15):

Westcoast Energy Inc. (“Westcoast”) announced today that it intends to exercise its right to redeem all of its outstanding Cumulative 5-Year Minimum Rate Reset Redeemable First Preferred Shares, Series 12 (“Series 12 Shares”) on October 15, 2021 at a price of $25.00 per Series 12 Share, together with all accrued and unpaid dividends, if any.

Beneficial holders who are not directly the registered holders of the Series 12 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 from registered shareholders should be directed to Westcoast’s Registrar and Transfer Agent, Computershare Investor Services Inc., at 1-800-564-6253 (Canada and United States) or 1-514-982-7555 (Outside North America).

Westcoast Energy Inc. is an indirect subsidiary of Enbridge Inc.

W.PR.M is a FixedReset 5.20%+452M520 that commenced trading 2016-8-30 after being announced 2016-8-22. It has been tracked by HIMIPref™; it was been assigned to the FixedResets (Premium) subindex.

Canaccord Genuity Group Inc. has announced (on 2021-9-1):

the applicable dividend rates for its Cumulative 5-Year Rate Reset First Preferred Shares, Series A (the “Series A Preferred Shares”) and its Cumulative Floating Rate First Preferred Shares, Series B (the “Series B Preferred Shares”), further to its press release dated August 3, 2021 announcing that it does not intend to exercise its right to redeem all or any part of the currently outstanding Series A Preferred Shares and, as a result of which, subject to certain conditions, the holders of the Series A Preferred Shares have the right to convert all or any part of their Series A Preferred Shares into Series B Preferred Shares on a one-for-one basis.

With respect to any Series A Preferred Shares that remain outstanding after September 30, 2021, holders thereof will be entitled to receive quarterly fixed, cumulative, preferential cash dividends, if, as and when declared by the Board of Directors of the Company, subject to the provisions of the Business Corporations Act (British Columbia). The dividend rate for the five-year period commencing on October 1, 2021 and ending on and including September 30, 2026 will be 4.028% per annum, being equal to the sum of the five-year Government of Canada bond yield determined as of today, plus 3.21%, in accordance with the terms of the Series A Preferred Shares.

With respect to any Series B Preferred Shares that may be issued on September 30, 2021, holders thereof will be entitled to receive quarterly floating rate, cumulative, preferential cash dividends, if, as and when declared by the Board of Directors of the Company, subject to the provisions of the Business Corporations Act (British Columbia). The dividend rate for the three-month period commencing on October 1, 2021 and ending on and including December 31, 2021 will be 3.388%per annum, being equal to the sum of the three-month Government of Canada Treasury Bill yield determined as of today, plus 3.21% (calculated on the basis of the actual number of days elapsed during such quarterly period divided by 365), in accordance with the terms of the Series B Preferred Shares. The quarterly floating dividend rate will be reset every quarter.

Beneficial owners of Series A Preferred Shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee to ensure their instructions are followed for exercising such right on or prior to the deadline for exercise, which is 5:00 p.m. (Toronto time) on September 15, 2021.

CF.PR.A was issued as a 5.50%+321 FixedReset that commenced trading 2011-6-23 after being announced 2011-6-6. After notice of extension the rate reset to 3.885% in 2016, but there was no conversion to FloatingReset.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced (on 2021-9-1):

the reset dividend rate and conversion privileges on its Class AAA Preference Shares, Series R (“Series R Shares”) (TSX: BPO.PR.R) and Class AAA Preference Shares, Series S (“Series S Shares”) (TSX: BPO.PR.S).

Series R Shares

If declared, the fixed quarterly dividends on the Series R Shares for the five years commencing October 1, 2021 and ending September 30, 2026 will be paid at an annual rate of 4.30% ($0.26875 per share per quarter).

Holders of Series R Shares have the right, at their option, exercisable no later than 5:00 p.m. (Toronto time) on September 15, 2021, to convert all or part of their Series R Shares, on a one-for-one basis, into Class AAA Preference Shares, Series S (the “Series S Shares”), effective September 30, 2021.

The quarterly floating rate dividends on the Series S Shares have an annual rate, calculated for each quarter, of 3.48% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the October 1, 2021 to December 31, 2021 dividend period for the Series S Shares will be 0.92252% (3.66% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.23063 per share, payable on December 31, 2021.

Holders of Series R Shares are not required to elect to convert all or any part of their Series R Shares into Series S Shares.

As provided in the share conditions of the Series R Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series S Shares outstanding after September 30, 2021, all remaining Series R Shares will be automatically converted into Series S Shares on a one-for-one basis effective September 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series S Shares outstanding after September 30, 2021, no Series R Shares will be permitted to be converted into Series S Shares. There are currently 8,883,425 Series R Shares outstanding.

Series S Shares

Holders of Series S Shares have the right, at their option, exercisable no later than 5:00 p.m. (Toronto time) on September 15, 2021, to convert all or part of their Series S Shares, on a one-for-one basis, into the Series R Shares, effective September 30, 2021.

Holders of Series S Shares are not required to elect to convert all or any part of their Series S Shares into Series R Shares.

As provided in the share conditions of the Series S Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series R Shares outstanding after September 30, 2021, all remaining Series S Shares will be automatically converted into Series R Shares on a one-for-one basis effective September 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series R Shares outstanding after September 30, 2021, no Series S Shares will be permitted to be converted into Series R Shares. There are currently 1,116,575 Series S Shares outstanding.

BPO.PR.R was issued as a 5.10%+348 FixedReset that commenced trading 2011-9-2 after being announced 2011-8-25. The issue reset to 4.155% in 2016 and there was an 11% conversion to the FloatingReset BPO.PR.S.

BPO.PR.S is a FloatingReset, Bills+348, that arose via a partial conversion from BPO.PR.R in 2016.