Category: Issue Comments

Bank of Montreal has announced (on 2021-7-16):

its intention to redeem all of its 9,425,607 outstanding Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 25 (“Preferred Shares Series 25”) for an aggregate total of approximately $236 million and all of its 2,174,393 outstanding Non-Cumulative Floating Rate Class B Preferred Shares, Series 26 (“Preferred Shares Series 26”) for an aggregate total of approximately $54 million on August 25, 2021. The redemption has been approved by the Office of the Superintendent of Financial Institutions.

The Preferred Shares Series 25 and the Preferred Shares Series 26 are redeemable at the Bank’s option on August 25, 2021, at a redemption price of $25.00 per share. Payment of the redemption price will be made by the Bank on August 25, 2021.

Separately from the payment of the redemption price, the final quarterly dividend of $0.112813 per share for the Preferred Shares Series 25 and $0.078704 per share for the Preferred Shares Series 26 announced by the Bank on May 26, 2021 will be paid in the usual manner on August 25, 2021, to shareholders of record on August 3, 2021.

Notice will be delivered to holders of the Preferred Shares Series 25 and the Preferred Shares Series 26 in accordance with the terms outlined in the Preferred Shares Series 25 and Preferred Shares Series 26 prospectus supplement.

BMO.PR.Q was issued as a FixedReset, 3.90%+115, which commenced trading 2011-3-11 after being announced 2011-3-2. Notice of extension was provided and the issue reset to 1.805% in 2016. There was a 19% conversion to the FloatingReset, BMO.PR.A.

BMO.PR.A arose through a partial conversion from the FixedReset, BMO.PR.Q, in 2016.

Canadian Western Bank has announced (on 2021-6-1):

that it will redeem all of its outstanding 5,600,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares Series 7 (Non-Viability Contingent Capital (NVCC)) (the “Series 7 Preferred Shares”) for cash on July 31, 2021. The Series 7 Preferred Shares (TSX: CWB.PR.C) are redeemable at CWB’s option on July 31, 2021 at a redemption price per Series 7 Preferred Share equal to $25.00 for an aggregate total of $140 million. Formal notice will be delivered to holders of Series 7 Preferred Shares in accordance with the terms outlined in the share provisions for the Series 7 Preferred Shares.

Separately from the redemption price, the final quarterly dividend of $0.390625 per Series 7 Preferred Share will be paid in the usual manner on July 31, 2021 to shareholders of record on July 23, 2021. After the Series 7 Preferred Shares are redeemed, holders of Series 7 Preferred Shares will cease to be entitled to distributions of dividends and will not be entitled to exercise any rights as holders other than to receive the redemption price.

CWB.PR.C was a FixedReset, 6.25%+547, NVCC, that commenced trading 2016-3-31 after being announced 2016-3-10. It was tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

Capstone Infrastructure Corporation has announced (on 2021-7-5):

the applicable dividend rates for its Cumulative 5-Year Rate Reset Preferred Shares, Series A (the “Series A shares”) and Cumulative Floating Rate Preferred Shares, Series B (the “Series B shares”) that will take effect on July 31, 2021.

With respect to any Series A shares that remain outstanding after August 3, 2021 (when, subject to the terms of the Corporation’s articles, holders of Series A shares who elect to exchange some or all of their Series A shares for Series B shares will have such shares exchanged) (the “Conversion Date”), holders of Series A shares will be entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Capstone. The dividend rate for the five-year period from and including July 31, 2021 to but excluding July 31, 2026 will be 3.702% per annum, being equal to the five-year Government of Canada bond yield determined as of today plus 2.71%, in accordance with the terms of the Series A shares.

With respect to any Series B shares that may be issued on the Conversion Date, 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 Capstone. The dividend rate for the three-month period from and including July 31, 2021 to but excluding October 31, 2021 will be 2.852% per annum, being equal to the three-month Government of Canada Treasury Bill yield per annum determined as of today plus 2.71%, with the amount of any quarterly dividend calculated based on the actual number of days in such quarterly period divided by 365, in accordance with the terms of the Series B shares.

Beneficial owners of Series A shares who wish to exercise their conversion right should communicate with their broker or other nominee to ensure their instructions are followed so that the registered holder of the Series A shares can meet the deadline to exercise such conversion right, which is 5:00 p.m. (EST) on July 19, 2021.

This followed notice of conversion rights (on 2021-6-10):

it does not intend to exercise its right under the terms of its Cumulative 5-Year Rate Reset Preferred Shares, Series A (the “Series A shares”) to redeem all or part of the currently outstanding 3,000,000 Series A shares on July 31, 2021. As a result, subject to certain conditions, the holders of the Series A shares have the right to convert all or part of their Series A shares, on a one-for-one basis, into Cumulative Floating Rate Preferred Shares, Series B (the “Series B shares”) on August 3, 2021 (the “Conversion Date”) in accordance with the terms of the Series A shares.

Holders of Series A shares who do not exercise their right to convert their Series A shares into Series B shares on the Conversion Date will retain their Series A shares, subject to the conditions set out below.

The dividend rate applicable to the Series A shares for the five-year period from July 31, 2021 to but excluding July 31, 2026, and the dividend rate applicable to the Series B shares for the three-month period from July 31, 2021 to October 31, 2021, will be determined and announced by way of a news release on July 5, 2021.

Beneficial owners of Series A shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from July 5, 2021 until July 19, 2021 at 5:00 p.m. (EST).

The foregoing conversion rights are subject to the conditions, as set out in the terms of the Series A shares, that: (i) if Capstone determines that there would remain outstanding on the Conversion Date less than 1,000,000 Series B shares, after having taken into account all Series A shares tendered for conversion into Series B shares, then holders of Series A shares will not be entitled to convert their shares into Series B shares and all holders will continue to hold Series A shares, and (ii) alternatively, if Capstone determines that there would remain outstanding on the Conversion Date less than 1,000,000 Series A shares, after having taken into account all Series A shares tendered for conversion into Series B shares, then all remaining Series A shares will automatically be converted into Series B shares on a one-for-one basis on the Conversion Date and all holders will hold Series B shares. In either case, Capstone will give written notice to that effect to the registered holder of Series A shares no later than July 27, 2021.

They then announced (on 2021-7-20):

that none of its Cumulative 5-Year Rate Reset Preferred Shares, Series A (the “Series A shares”) will be converted into Cumulative Floating Rate Preferred Shares, Series B (the “Series B shares”).

On June 10, 2021, Capstone notified holders of Series A shares that they could elect to convert their Series A shares into Series B shares, subject to the terms and conditions of those shares. One such condition is that, following conversion, there be at least 1,000,000 Series B shares outstanding or else no Series A shares will be converted.

As of 5:00 p.m. (EST) on July 19, 2021, the end of the period during which holders of Series A shares could elect to convert their Series A shares into Series B shares, elections for conversion into Series B shares were received in respect of only 57,250 of the 3,000,000 outstanding Series A shares. As a result, the above condition is not satisfied and no Series A shares will be converted into Series B shares. All holders of Series A shares will continue to hold Series A shares.

As previously announced, for the five-year period from and including July 31, 2021 to but excluding July 31, 2026, the fixed annual dividend rate for the Series A shares has been set at 3.702% per share, payable in equal quarterly amounts on the last day of each of the months of January, April, July and October if, as and when dividends are declared by the Board of Directors of the Corporation.

CSE.PR.A was issued as a FixedReset, 5.00%+271, that commenced trading 2011-6-30 after being announced 2011-6-13. Notice of extension was provided and it reset to 3.271% in 2016. I recommended against conversion and there was no conversion to FloatingReset. The issue is now unrated.

The Bank of Nova Scotia has announced (on 2021-6-17):

its intention to redeem all outstanding Non-cumulative 5-Year Rate Reset Preferred Shares Series 36 (Non-Viability Contingent Capital (NVCC)) (“Series 36 Shares”) of Scotiabank on July 26, 2021 at a price equal to $25.00 per share together with declared and unpaid dividends to the Redemption Date (the “Redemption Price”). Formal notice will be issued to the shareholders in accordance with the share conditions.

The redemption has been approved by the Office of the Superintendent of Financial Institutions and will be financed out of the general funds of Scotiabank. This redemption is part of the Bank’s ongoing management of its Tier 1 capital.

On June 1, 2021, the Board of Directors of Scotiabank declared quarterly dividends of $0.343750 per Series 36 Share. This will be the final dividend on the Series 36 Shares and will be paid on July 26, 2021, to shareholders of record at the close of business on July 6, 2021, as previously announced. Subsequent to this final dividend payment, the Series 36 Shares will cease to be entitled to dividends.

BNS.PR.G was a FixedReset, 5.50%+472, that commenced trading 2016-3-14 after being announced 2016-3-3. It was tracked by HIMIPref™ and is assigned to the FixedReset-Premium subindex.

Brookfield Renewable Partners L.P. has announced (on 2021-7-2):

that it intends to redeem all of its outstanding Class A Preferred Limited Partnership Units, Series 9 (the “Series 9 Preferred Units”) (TSX: BEP.PR.I) for cash on July 31, 2021. The redemption price for each Series 9 Preferred Unit will be C$25.00. Holders of Series 9 Preferred Units of record as of July 15, 2021 will receive the previously declared final quarterly distribution of $0.359375 per Series 9 Preferred Unit.

BEP.PR.I was a FixedReset, 5.75%+501M575, that commenced trading 2016-5-25 after being announced 2016-5-16. The issue was tracked by HIMIPref™ but was relegated to the Scraps subindex on credit concerns.

Brookfield Asset Management Inc. has announced (on 2021-6-1):

that it has determined the fixed dividend rate on its Cumulative Class A Preference Shares, Series 24 (“Series 24 Shares”) (TSX: BAM.PR.R) for the five years commencing July 1, 2021 and ending June 30, 2026, and also determined the quarterly dividend on its floating rate Cumulative Class A Preference Shares, Series 25 (“Series 25 Shares”) (TSX: BAM.PR.S).

If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2021 will be paid at an annual rate of 3.237% ($0.2023125 per share per quarter).

Holders of Series 24 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series 24 Shares, on a one-for-one basis, into Series 25 Shares, effective June 30, 2021. The quarterly floating rate dividends on the Series 25 Shares will be paid at an annual rate, calculated for each quarter, of 2.30% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2021 to September 30, 2021 dividend period will be 0.6072% (2.409% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.1518 per share, payable on September 30, 2021.

Holders of Series 25 Shares also have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series 25 Shares, on a one-for-one basis, into Series 24 Shares, effective June 30, 2021. Holders of the Series 25 Shares who elect to convert their shares by the conversion deadline will receive Series 24 Shares, effective June 30, 2021 and will be entitled to receive, if declared, the fixed-rate dividend as described above.

Holders of Series 24 Shares are not required to elect to convert all or any part of their Series 24 Shares into Series 25 Shares and holders of Series 25 Shares are not required to elect to convert all or any part of their Series 25 Shares into Series 24 Shares.

As provided in the share conditions of the Series 24 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 24 Shares outstanding after June 30, 2021, all remaining Series 24 Shares will be automatically converted into Series 25 Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 25 Shares outstanding after June 30, 2021, no Series 24 Shares will be permitted to be converted into Series 25 Shares. There are currently 9,278,894 Series 24 Shares outstanding.

Similarly, as provided in the share conditions of the Series 25 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 25 Shares outstanding after June 30, 2021, all remaining Series 25 Shares will be automatically converted into Series 24 Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 24 Shares outstanding after June 30, 2021, no Series 25 Shares will be permitted to be converted into Series 24 Shares. There are currently 1,529,133 Series 25 Shares outstanding.

They later announced (on 2021-6-23):

that 28,961 of its Cumulative Class A Preference Shares, Series 24 (the “Series 24 Shares”) (TSX: BAM.PR.R) and 658,612 of its Cumulative Class A Preference Shares, Series 25 (the “Series 25 Shares”) (TSX: BAM.PR.S) were tendered for conversion into Series 25 Shares and Series 24 Shares, respectively.

Brookfield currently has 9,278,894 Series 24 Shares and 1,529,133 Series 25 Shares outstanding. After taking into account all shares tendered for conversion, there would be less than one million Series 25 Shares outstanding on June 30, 2021, the conversion date. Accordingly, as provided in the share conditions of the Series 25 Shares, all remaining Series 25 Shares will be automatically converted into Series 24 Shares on a one-for-one basis effective June 30, 2021 (“automatic conversion”). There will be no conversion of Series 24 Shares tendered for conversion into Series 25 Shares, and holders of Series 24 Shares will retain their Series 24 Shares.

Following the automatic conversion, there will be 10,808,027 Series 24 Shares and no Series 25 Shares issued and outstanding. Holders of Series 25 Shares will receive a dividend of $0.147905 per share payable on June 30, 2021 in respect of the April 1, 2021 to June 30, 2021 floating rate period. If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2021 will be paid at an annual rate of 3.237% ($0.2023125 per share per quarter). The Series 25 Shares will be de-listed from the Toronto Stock Exchange effective as of close of trading on June 30, 2021.

BAM.PR.R was issued as a FixedReset, 5.40%+230, that commenced trading 2010-1-14 after being announced 2010-1-5. It reset to 3.014% in 2016; I recommended against conversion but there was a 14% conversion to the FloatingReset BAM.PR.S anyway.

BAM.PR.S was a FloatingReset, Bills+230, that arose via a partial conversion from the FixedReset BAM.PR.R.

Brompton Funds announced (on 2021-3-10):

) Global Dividend Growth Split Corp. (the “Company”) is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively).

The sales period for this overnight offering will end at 9:00 a.m. (ET) on Thursday, March 11, 2021. The offering is expected to close on or about March 18, 2021 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 $11.15 per Class A Share for a distribution rate of 10.8% on the issue price, and the Preferred Shares will be offered at a price of $10.20 per Preferred Share for a yield to maturity of 4.8%. The closing price on the TSX for each of the Class A Shares and Preferred Shares on March 9, 2021 was $11.32 and $10.44, 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 March 9, 2021), 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 diversified portfolio (the “Portfolio”) of equity securities of large capitalization global dividend growth companies selected by the 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 of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least $10 billion; and (ii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.

The investment objectives for the Class A Shares are to provide holders with regular monthly cash distributions and to provide the opportunity for growth in the net asset value per Class A Share.

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.125 per Preferred Share, and to return the original issue price to holders of Preferred Shares on June 30, 2026.

The Company also announces that the distribution rate for the Preferred Shares of the Company for the 5 year term from July 1, 2021 to June 30, 2026 will remain unchanged at $0.50 per annum (5% on the original issue price of $10.00) payable quarterly. The Preferred Share distribution rate is based on current market rates for preferred shares with similar terms. In addition, the Company intends to maintain the targeted monthly Class A Share distribution rate at $0.10 per Class A Share. The Company previously announced the extension of the maturity date in respect of the Class A Shares and the Preferred Shares from June 30, 2021 to June 30, 2026. The term extension offers preferred shareholders the opportunity to enjoy preferential cash dividends until June 30, 2026.

Since inception to February 28, 2021, the Preferred Share has delivered a 5.1% per annum return.

Since inception to February 28, 2021, Class A shareholders have also received cash distributions of $3.25 per Class A Share. Class A shareholders have the option to benefit by reinvesting their cash distributions in a distribution reinvestment plan (“DRIP”) which is commission free to participants. Class A shareholders can enroll in this program by contacting their investment advisor.

In connection with the extension, shareholders who do not wish to continue their investment in the Fund, will be able to retract their Preferred Shares or Class A Shares on June 30, 2021 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 Fund were to terminate on June 30, 2021. Pursuant to this option, the retraction price may be less than the market price if the share is trading at a premium to net asset value. To exercise this retraction right shareholders must provide notice to their investment dealer by their dealer’s deadline which in any event cannot be later than May 31, 2021 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, or shareholders may take no action and continue to hold their shares.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced (on 2021-6-1):

the reset dividend rate on its … Class AAA Preference Shares, Series CC (“Series CC Shares”) (TSX: BPO.PR.C). … Series CC Shares

If declared, the fixed quarterly dividends on the Series CC Shares for the five years commencing July 1, 2021 and ending June 30, 2026 will be paid at an annual rate of 6.12% ($0.382313 per share per quarter).

Holders of Series CC Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series CC Shares, on a one-for-one basis, into Class AAA Preference Shares, Series DD (the “Series DD Shares”), effective June 30, 2021.

The quarterly floating rate dividends on the Series DD Shares have an annual rate, calculated for each quarter, of 5.18% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the July 1, 2021 to September 30, 2021 dividend period for the Series DD Shares will be 1.333370% (5.29% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.333343 per share, payable on September 30, 2021.

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

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

The TSX has conditionally approved the listing of the Series DD Shares effective upon conversion. Listing of the Series DD Shares is subject to Brookfield fulfilling all the listing requirements of the TSX and, upon approval, the Series DD Shares will be listed on the TSX under the trading symbol “BPO.PR.D”.

They later announced (on 2021-6-21):

that after having taken into account all election notices received by the June 15, 2021 deadline for the conversion of the Class AAA Preference Shares, Series CC (the “Series CC Shares”) (TSX: BPO.PR.C) into Class AAA Preference Shares, Series DD (the “Series DD Shares”), the holders of Series CC Shares are not entitled to convert their Series CC Shares into Series DD Shares. There were 245,472 Series CC Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series DD Shares.

The Series CC Shares will pay on a quarterly basis, for the five-year period beginning on July 1, 2021, as and when declared by the board of directors of Brookfield, a fixed dividend based on an annual dividend rate of 6.12% ($0.382313 per share per quarter).

BPO.PR.C was issued as a FixedReset, 6.00%+518M600, that commenced trading 2016-4-27 after being announced 2016-4-18. The issue has been tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced (on 2021-6-1; broken link fixed 2023-2-4):

the reset dividend rate on its Class AAA Preference Shares, Series N (“Series N Shares”) (TSX: BPO.PR.N)…

Series N Shares

If declared, the fixed quarterly dividends on the Series N Shares for the five years commencing July 1, 2021 and ending June 30, 2026 will be paid at an annual rate of 4.01% ($0.250438 per share per quarter).

Holders of Series N Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series N Shares, on a one-for-one basis, into Class AAA Preference Shares, Series O (the “Series O Shares”), effective June 30, 2021.

The quarterly floating rate dividends on the Series O Shares have an annual rate, calculated for each quarter, of 3.07% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the July 1, 2021 to September 30, 2021 dividend period for the Series O Shares will be 0.801530% (3.18% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.200383 per share, payable on September 30, 2021.

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

As provided in the share conditions of the Series N Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series N Shares outstanding after June 30, 2021, all remaining Series N Shares will be automatically converted into Series O Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series O Shares outstanding after June 30, 2021, no Series N Shares will be permitted to be converted into Series O Shares. There are currently 11,000,000 Series N Shares outstanding.

They later announced (on 2021-6-21):

that after having taken into account all election notices received by the June 15, 2021 deadline for the conversion of the Class AAA Preference Shares, Series N (the “Series N Shares”) (TSX: BPO.PR.N) into Class AAA Preference Shares, Series O (the “Series O Shares”), the holders of Series N Shares are not entitled to convert their Series N Shares into Series O Shares. There were 71,662 Series N Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series O Shares.

The Series N Shares will pay on a quarterly basis, for the five-year period beginning on July 1, 2021, as and when declared by the board of directors of Brookfield, a fixed dividend based on an annual dividend rate of 4.01% ($0.250438 per share per quarter).

BPO.PR.N was issued a FixedReset 6.15%+307, that commenced trading 2010-1-20 after being announced 2010-1-11. The issue attracted some unfavourable comment on issue due to the relatively long call lock-out period – which shows complete misunderstanding of the investment impact of an issuer call option, but we’ll ignore that. The issue reset to 3.782% in 2016; I recommended against conversion and there was no conversion.

UPDATE, 2023-2-4: It has come to my attention that the figure quoted for the dollar amount of quarterly dividends in the text ($0.250438) does not agree with the annual rate in the text and headline (4.01%). The rate that gives the dollar value shown in 4.007%. In the absence of any response to my initial attempt at contact, and unless and until I receive an answer to my current eMail, I’m going to assume the dollar value is correct.

UPDATE, 2023-2-13: So I had a highly entertaining exchange with the Brookfield Investor Relations representative:

I sent on Feb 4:

In your press release of 2021-6-1 ( https://bpy.brookfield.com/press-releases/bpo/brookfield-office-properties-announces-reset-dividend-rates-and-conversion ), the rate given for the Series N shares (4.01%) is not in agreement with the dollar figure provided for the quarterly dividends (0.250438 per share).

What is the correct rate and dollar amount?

She answered on Feb. 6:

Thank you for your email. I’ve looked into this and confirmed that what we stated in the press release is correct. The quarterly dollar amount of 0.250438 per share is in Canadian dollars. This per share amount was determined by multiplying the Annual Fixed Rate (4.01%), applicable to the Subsequent Fixed Rate Period, by C.$25.00 and dividing by four.

Please let me know if you have any additional questions.

I replied on Feb. 6:

It appears we have an arithmetical dispute.

I claim that:

1. 25.00 * 4.01% = 1.002500
2. 1.002500 / 4 = 0.250625
3. This is a different result from your answer of 0.250438

Can you tell me which of my claims you disagree with?

And she responded on Feb. 6:

Oh I’m sorry, I forgot to mention an important point in my previous email that the fixed rate % is rounded in the press release from 4.007% to 4.01%

Therefore, the exact calculation would be,

25.00 X 4.007% = 1.00175
1.00175 / 4 = 0.2504375

Laurentian Bank of Canada has announced (on 2021-5-12):

that it will redeem, on June 15, 2021, all of its Non-Cumulative Class A Preferred Shares, Series 15 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 15”) then outstanding. Such Preferred Shares Series 15 will be redeemed at a redemption price of $25.00 per share, together with any declared and unpaid dividends.

Separately from the redemption price, the final quarterly dividend of $0.365625 per Preferred Shares Series 15 will be paid, subject to its declaration by the board of directors of Laurentian Bank, in the usual manner on June 15, 2021 to shareholders of record on June 7, 2021 or such other record date determined by the board. After the Preferred Shares Series 15 are redeemed, holders of Preferred Shares Series 15 will cease to be entitled to distributions of dividends and will not be entitled to exercise any rights as holders of Preferred Shares Series 15 other than to receive the redemption price.

Beneficial holders who are not the registered holders of Preferred Shares Series 15 should contact the financial institution, broker or other intermediary through which they hold such shares to confirm how they will receive the redemption proceeds. Formal notices and instructions for the redemption will be forwarded to all registered shareholders.

LB.PR.J was a FixedReset, 5.85%+513, NVCC, that commenced trading 2016-3-17 after being announced 2016-3-8. It was tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.