PrefBlog

Equitable Bank has announced (in its 24Q3 Earnings Release):

EQB preferred share redemption

• On September 30, 2024, EQB will redeem all of the 2,911,800 outstanding shares of its Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 3 (the “Series 3 Preferred Shares”). The redemption price per share for the Series 3 Preferred Shares will be $25.00 for each Series 3 Preferred Share of the Company.
• The Series 3 Preferred Shares are currently listed for trading on the Toronto Stock Exchange under the symbol EQB.PR.C and will be de-listed from the TSX, as at the close of trading on September 30, 2024. Beneficial holders of Series 3 Preferred 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.

EQB.PR.C was issued as a FixedReset, 6.35%+478 in the summer of 2014. It reset to 5.969% effective 2019-09-30. The issue has not been tracked by HIMIPref™ as there has been no credit rating for the preferreds (although one has been obtained for the LRCNs). As I wrote at time of issue:

This issue is unrated and will not be tracked by HIMIPref™. This is not because I worship the Credit Rating Agencies and am unable to do anything without them; it is because I feel that a public announcement by the CRAs of imminent downgrades do an admirable job of concentrating the minds of management and the directors on fixing the problem. Such announcements by Hymas Investment Management Inc. or Joe Blogger do not carry the same weight.

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

TransAlta Corporation has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding cumulative redeemable rate reset first preferred shares Series G (“Series G Shares”) (TSX: TA.PR.J) on September 30, 2024 (the “Conversion Date”).

As a result, the holders of the Series G Shares will have the right to convert all or any of their Series G Shares into cumulative redeemable floating rate first preferred shares Series H of the Company (“Series H Shares”) on the basis of one Series H Share for each Series G Share on the Conversion Date subject to the terms and conditions of the Series G Shares, including those described in the prospectus supplement dated August 8, 2014 relating to the issuance of the Series G Shares.

The dividend rate applicable to the Series G Shares for the 5-year period from and including September 30, 2024, to but excluding September 30, 2029, and the dividend rate applicable to the Series H Shares for the 3-month period from and including September 30, 2024, to but excluding December 31, 2024, will be determined and announced by the Company by way of a news release on September 3, 2024.

As provided in the terms of the Series G Shares, if TransAlta determines after reviewing all Series G Shares tendered for conversion into Series H Shares that: (i) there would remain outstanding on September 30, 2024, less than 1,000,000 Series G Shares, all remaining Series G Shares shall be converted automatically into Series H Shares on a one-for one basis effective September 30, 2024; or (ii) there would remain outstanding after September 30, 2024, less than 1,000,000 Series H Shares, the holders of Series G Shares shall not be entitled to convert their shares into Series H Shares effective September 30, 2024. There are currently 6,600,000 Series G Shares outstanding.

The Series G 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 G Shares must be exercised through CDS or the CDS Participant through which the Series G Shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series G Shares into Series H Shares is 3:00 p.m. (MST) / 5:00 p.m. (EST) on September 16, 2024. Any notices received after this deadline will not be valid. As such, holders of Series G Shares who wish to exercise their right 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.

If TransAlta does not receive an election notice from a holder of Series G Shares during the time fixed therefore, then the Series G Shares shall be deemed not to have been converted (except in the case of an automatic conversion). Holders of the Series G Shares and the Series H Shares will have the opportunity to convert their shares again on September 30, 2029, and every five years thereafter as long as the shares remain outstanding.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of the Series H Shares effective upon conversion.

Listing of the Series H Shares is subject to TransAlta fulfilling all the listing requirements of the TSX.

TA.PR.J was issued as a FixedReset, 5.30%+380, that commenced trading 2014-8-14 after being announced 2014-8-6. The issue reset at 4.988% effective September 30, 2019. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™ and has been assigned to the Scraps index on credit concerns. It continues to be rated P-4(high by S&P but remains at Pfd-3(low) with DBRS.

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

Enbridge Inc. has announced:

that 1,502,775 of its outstanding Cumulative Redeemable Preference Shares, Series 3 (Series 3 Shares) were tendered for conversion, on a one-for-one basis, into Cumulative Redeemable Preference Shares, Series 4 of Enbridge (Series 4 Shares), effective on September 1, 2024. As a result, on September 1, 2024, Enbridge will have 22,497,225 Series 3 Shares and 1,502,775 Series 4 Shares issued and outstanding.

The Series 3 Shares will continue to be listed on the Toronto Stock Exchange (TSX) under the symbol ENB.PR.Y. The TSX has conditionally approved the listing of the Series 4 Shares effective upon conversion. The Series 4 Shares will begin trading on the TSX on September 3, 2024, subject to the fulfillment of all the listing requirements of the TSX.

ENB.PR.Y was issued as a FixedReset, 4.00%+238, that commenced trading 2013-6-6 after being announced 2013-5-28. The issue reset at 3.737% effective September 1, 2019. I recommended against conversion and there was no conversion. The issue will reset to 5.288% effective 2024-9-1. ENB.PR.Y is tracked by HIMIPref™ and has been assigned to the FixedReset (Discount) subindex following the DBRS upgrade.

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

Update, 2024-09-03: I note that the FloatingReset has been assigned the ticker symbol ENB.PR.Z

Element Fleet Management Corp. has announced (in their 24Q2 Earnings Release):

Intention to redeem all its outstanding 5.903% Cumulative 5-Year Rate Reset Preferred Shares Series E

To further optimize the Company’s balance sheet and mature its capital structure, the Company announced today its intention to redeem – in accordance with the terms of the 5.903% Cumulative 5-Year Rate Reset Preferred Shares Series E (the “Series E Shares”) as set out in the Company’s articles – all of its 5,321,900 issued and outstanding Series E Shares on September 30, 2024 (the “Share Redemption Date”) for a redemption price equal to CAD$25.00 per Series E Share for a an aggregate total amount of approximately US$92.4 million (CAD$133 million), together with all accrued and unpaid dividends up to but excluding the Share Redemption Date (the “Redemption Price”), less any tax required to be deducted and withheld by the Company.

The Company has provided notice today of the Redemption Price and the Share Redemption Date to the sole registered holder of the Series E Shares in accordance with the terms of the Series E Shares as set out in the Company’s articles. Non-registered holders of Series E Shares should contact their broker or other intermediary for information regarding the redemption process for the Series E Shares in which they hold a beneficial interest. The Company’s transfer agent for the Series E Shares is Computershare Investor Services Inc. (“Computershare Investor Services”). Questions regarding the redemption process may be directed to Computershare Investor Services at 1-800-564-6253 or by email to corporateactions@computershare.com.

Following their redemption on September 30, 2024, the Series E Shares will be de-listed from and no longer trade on the Toronto Stock Exchange (“TSX”).

EFN.PR.E was issued as a FixedReset, 6.40%+472, that was announced 2014-6-2 but not immediately tracked by HIMIPref™ as it was unrated. Coverage commenced in September, 2015 after the company’s preferreds were rated Pfd-3 by DBRS. The extension was announced 2019-8-27. The issue reset at 5.903% effective 2019-9-30. I recommended against conversion and there was no conversion. The company announced its intention to redeem this issue in November 2023. The issue is tracked by HIMIPref™ and is assigned to the Scraps – FixedReset – Discount subindex.

Thanks to Assiduous Reader RAV4guy for bringing this to my attention!

Dundee Corporation has announced:

that it intends to exercise its right to redeem all currently outstanding cumulative 5-year rate reset first preference shares, series 2 (the “Series 2 Shares”) and cumulative floating rate first preference shares, series 3 (the “Series 3 Shares”) on September 30, 2024 at a price of $25.00 per share, together with any accrued and unpaid dividends. The Company currently has outstanding 1,145,362 Series 2 Shares and 724,982 Series 3 Shares.
Jonathan Goodman, President and Chief Executive Officer of Dundee, commented:

“As we continue to strengthen our financial position, I am pleased to announce the retirement of all outstanding preferred shares. This strategic move underscores our commitment to simplifying our capital structure, enhancing shareholder value, and positioning the Company for long-term growth. We appreciate the support of all classes of shareholders and remain focused on delivering consistent returns for all our stakeholders. As an investor in development stage mining businesses, it is prudent for us at this time to significantly reduce our burn rate and cost of capital as we move our portfolio forward and look to bring cash flow into the Company.”

DC.PR.B was issued as a FixedReset, 5.688%+410, that commenced trading 2009-9-15 with a 6.75% coupon after being announced 2009-8-25. It reset to 5.688% effective 2014-09-30. I made no recommendation regarding conversion. DC.PR.B later reset to 5.284% effective September 30, 2019. I recommended retaining, or converting to, DC.PR.B. Instead, there was a small net conversion to DC.PR.D leaving DC.PR.B with about 61% of the total. Sixty-three per cent of this issue was cancelled in 2020 following a purchase offer. The issue is tracked by HIMIPref™ but has been relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.

DC.PR.D is a FloatingReset, +410, that came into existence via a partial conversion from DC.PR.B. It is tracked by HIMIPref™ but relegated to the Scraps – FloatingReset subindex on credit concerns.

Thanks to Assiduous Reader Dan Good for bringing this to my attention!

The reaction of Assiduous Reader DR is worth highlighting here:

ahh, ‘ol dundee…

when first entered rate resets in 2015/16 this was one of my names. not sure the pref traded below the common (in absolute terms) but was dang close if memory serves. once the common fell below $2, i was looking for first reasonable exit on prefs which in time came

but here we are, 8 yrs later. common having gone from 10ish to 1ish, while the prefs went from 10ish to par. + 8 yrs of pref divs and nada on common.

the poster child for prefs vs common!

Enbridge Inc. has announced:

that it does not intend to exercise its right to redeem its currently outstanding Cumulative Redeemable Preference Shares, Series 3 (Series 3 Shares) (TSX: ENB.PR.Y) on September 1, 2024. As a result, subject to certain conditions, the holders of the Series 3 Shares have the right to convert all or part of their Series 3 Shares on a one-for-one basis into Cumulative Redeemable Preference Shares, Series 4 of Enbridge (Series 4 Shares) on September 1, 2024. Holders who do not exercise their right to convert their Series 3 Shares into Series 4 Shares will retain their Series 3 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 3 Shares outstanding after September 1, 2024, then all remaining Series 3 Shares will automatically be converted into Series 4 Shares on a one-for-one basis on September 1, 2024; and (ii) alternatively, if Enbridge determines that there would be less than 1,000,000 Series 4 Shares outstanding after September 1, 2024, no Series 3 Shares will be converted into Series 4 Shares. There are currently 24,000,000 Series 3 Shares outstanding.

With respect to any Series 3 Shares that remain outstanding after September 1, 2024, 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 3 Shares for the five-year period commencing on September 1, 2024 to, but excluding, September 1, 2029 will be 5.288% percent, being equal to the five-year Government of Canada bond yield of 2.908 percent determined as of today plus 2.38 percent in accordance with the terms of the Series 3 Shares.

With respect to any Series 4 Shares that may be issued on September 1, 2024, 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 4 Shares for the three-month floating rate period commencing on September 1, 2024 to, but excluding, December 1, 2024 will be 1.68822 percent, based on the annual rate on three month Government of Canada treasury bills for the most recent treasury bills auction of 4.41 percent plus 2.38 percent in accordance with the terms of the Series 4 Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.

Beneficial holders of Series 3 Shares who wish to exercise their right of conversion during the conversion period, which runs from August 2, 2024 until 5:00 p.m. (EST) on August 19, 2024, 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.Y was issued as a FixedReset, 4.00%+238, that commenced trading 2013-6-6 after being announced 2013-5-28. The issue reset at 3.737% effective September 1, 2019. I recommended against conversion and there was no conversion. ENB.PR.Y is tracked by HIMIPref™ and has been assigned to the FixedReset (Discount) subindex following the DBRS upgrade.

Brompton Group has announced (critical part bolded):

– (TSX: DGS, DGS.PR.A) Dividend Growth Split Corp. (the “Fund”) announces that the preferred share (the “Preferred Shares”) distribution rate for the next term from September 28, 2024 to August 30, 2029 will be $0.675 per Preferred Share per annum (6.75% on the par value of $10.00) payable quarterly. This represents a pre-tax interest equivalent yield of 8.8% per annum.(1) The Preferred Share distribution rate is based on current market rates for preferred shares with similar terms.

The term extension offers preferred shareholders the opportunity to continue enjoying preferential cash dividends until August 30, 2029. Over the past 10-year period to June 30, 2024, the Preferred Share has delivered a 5.5% per annum return(2). The Preferred Share has delivered consistent returns over various interest rate cycles and has outperformed the S&P/TSX Preferred Share Index over the past 10-year period by 3.2% per annum, with less volatility. (2)

Annual Compound Returns(2)	1-Year	3-Year	5-Year	10-Year
Preferred Shares (TSX: DGS.PR.A)	5.6%	5.6%	5.6%	5.5%
S&P/TSX Preferred Share Index	20.7%	1.1%	5.6%	2.3%

In addition, the Fund intends to maintain the targeted monthly class A share (the “Class A Share”) distribution rate of at least $0.10 per Class A Share.(3) The Class A share has outperformed the S&P/TSX Composite Index (the “Composite Index) and the S&P/TSX Composite High Dividend Index (the “High Dividend Index) over the past 1, 3, 5 and 10-year periods.(2) Over the past 10-year period to June 30, 2024, the Class A Share has delivered a 10.7% per annum return, outperforming the High Dividend Index by 5% per annum and the Composite Index by 3.7% per annum. (2)

Annual Compound Returns(2)	1-Year	3-Year	5-Year	10-Year
Class A Shares (TSX: DGS)	27.2%	14.2%	16.1%	10.7%
S&P/TSX Composite Index	12.1%	6.0%	9.3%	7.0%
S&P/TSX Composite High Dividend Index	6.6%	6.3%	8.7%	5.7%

Since inception on December 3, 2007 to June 30, 2024, Class A shareholders have received cash distributions of $16.39 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 the DRIP program by contacting their investment advisor.

The Fund invests, on an approximately equally-weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, DGS may hold up to 20% of the total assets of the portfolio in global dividend growth companies for diversification and enhanced return potential.

In connection with the extension, shareholders who do not wish to continue their investment in the Fund, may retract their Preferred Shares or Class A Shares on September 27, 2024 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 September 27, 2024. Pursuant to this option, the retraction price may be less than the market price if the security is trading at a premium to net asset value. To exercise this retraction right, shareholders must provide notice to their investment dealer by August 30, 2024 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.

Thanks to Assiduous Reader RAV4guy for bringing this to my attention!

Bank of Montreal has announced:

its intention to redeem all of its 16,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 29 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 29”) for an aggregate total of $400 million on August 25, 2024. The redemption has been approved by the Office of the Superintendent of Financial Institutions.

The Preferred Shares Series 29 are redeemable at the Bank’s option on August 25, 2024 (the “Redemption Date”) at a redemption price of $25.00 per share. Payment of the redemption price will be made by the Bank on August 26, 2024, the first business day following the Redemption Date.

Separately from the payment of the redemption price, the final quarterly dividend of $0.2265 per share for the Preferred Shares Series 29 announced by the Bank on May 29, 2024 will be paid in the usual manner on August 26, 2024, to shareholders of record on July 30, 2024.

Notice will be delivered to holders of the Preferred Shares Series 29 in accordance with the terms thereof.

BMO.PR.T was issued as a FixedReset, 3.90%+224, NVCC-compliant issue that commenced trading 2014-6-6 after being announced 2019-05-28. BMO.PR.T reset at 3.624% effective August 25, 2019. I recommended against conversion and there was no conversion. The redemption was foreshadowed by the issuance of LRCNs. BMO.PR.T is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

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

Bank of Montreal has announced (bolding added):

the pricing of USD 750 million of non-viability contingent capital (“NVCC”) Additional Tier 1 (AT1) Limited Recourse Capital Notes, Series 5 (the “LRCNs”).

The LRCNs will bear interest at a rate of 7.300 per cent annually, payable quarterly, for the initial period ending, but excluding, November 26, 2034. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year U.S. Treasury Rate plus 3.01 per cent. The LRCNs will mature on November 26, 2084. The expected closing date of the offering is July 17, 2024.

On or before the issuance of the LRCNs, the Bank will issue NVCC Non-Cumulative 5-Year Fixed Rate Reset Class B Preferred Shares, Series 54 (“Preferred Shares Series 54”) to be held by Computershare Trust Company of Canada, as trustee for BMO LRCN Trust (the “Limited Recourse Trust”). In case of non-payment of interest on or principal of the LRCNs when due, the recourse of each LRCN holder will be limited to that holder’s proportionate share of the Limited Recourse Trust’s assets, which will consist of Preferred Shares Series 54 except in limited circumstances.

The LRCNs may be redeemed at the option of the Bank, with the prior written approval of the Superintendent of Financial Institutions (Canada), in whole or in part, on not less than 10 nor more than 60 days’ prior notice, every quarter on the interest payment date, commencing on November 26, 2034.

The net proceeds will be contributed to the general funds of the Bank and will be utilized for general banking purposes, which may include the redemption of outstanding capital securities of the Bank and/or repayment of other outstanding liabilities of the Bank, and are expected to qualify as Additional Tier 1 capital of the Bank for regulatory purposes.

BMO Capital Markets Corp., BofA Securities, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Truist Securities, Inc. and UBS Securities LLC are the joint book-running managers for the offering.

BMO.PR.T was issued as a FixedReset, 3.90%+224, NVCC-compliant issue that commenced trading 2014-6-6 after being announced 2019-05-28. BMO.PR.T reset at 3.624% effective August 25, 2019. I recommended against conversion and there was no conversion. It is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

It is certainly possible that BMO.PR.T will be redeemed with the proceeds from this LRCN, but certainly not guaranteed until BMO makes a formal announcement. So be careful! The market for this issue didn’t change much today, closing with a quote of 24.91-05 – the trading price went up $0.40 on June 24, the day TD announced an LRCN deal, which was also for USD 750-million.

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

In late May, Mulvihill published a Notice of Special Meeting and Management Information Circular for World Financial Split Corp., known to us as WFS.PR.A (Capital Units were WFS) [bolding added for the critical bits]:

The purpose of the Meeting is to consider and vote upon a special resolution to reposition and recapitalize the Fund to enhance its ability to meet its investment objectives going forward. In this regard, the Fund proposes to change the following (collectively, the “Proposed Amendments”):
1. the investment objectives, strategy and restrictions of the Fund to expand and diversify the portfolio of equity securities to global equity securities selected by the Manager and increase the dividend on the Preferred Shares to $0.0625 per month (7.5% on the original $10.00 issue price) and reinstate the Class A Share distribution (targeted at 12.0% per annum payable monthly on the consolidated Class A Share net asset value per share of approximately $8.00 per share);

2. the articles of the Fund to:
(a) change the name of the Fund from “World Financial Split Corp.” to “Premium Global Income Split Corp.”;
(b) consolidate the Class A Shares of the Fund in order to reset the net asset value per Class A Share to approximately $8.00 per share;
(c) change the existing Preferred Shares of the Fund into a number of Class A Shares and a lesser number of the same class of Preferred Shares to be determined based on the number of shares surrendered pursuant to the Special Retraction Right referred to below (for example, assuming a 4:1 Class A Share consolidation, the Manager would expect 100 Preferred Shares to be exchanged into approximately 41 Class A Shares and 66 Preferred Shares with a value initially equal to the value of the Preferred Shares so exchanged. The exact numbers into which such shares are proposed to be changed shall be announced on June 17, 2024);
(d) extend the Termination Date of the Fund from June 30, 2025 to June 30, 2029 and provide the directors of the Fund with the ability to extend the Termination Date for successive five year terms;
(e) eliminate the $15.00 net asset value per Unit dividend threshold on Class A Shares;
(f) provide holders of Class A Shares and Preferred Shares who do not wish to continue their investment in the Fund with a special retraction right (the “Special Retraction Right”) to enable such Shareholders to retract their shares on June 28, 2024 on the same terms that would have applied had the Fund redeemed all Shares as originally contemplated for June 30, 2025 and provide that the Shareholders who wish to exercise the Special Retraction Right must give notice that they wish to exercise such right on or prior to June 14, 2024; and
(g) create an unlimited number of new classes of shares, issuable in an unlimited number of series and authorize the directors of the Fund to determine the rights, privileges and restrictions attaching to each such series;

On June 17, they announced:

as a result of the special retraction right to be provided to holders of Class A Shares and Preferred Shares who do not wish to continue their investment in the Fund should the Proposal be approved by shareholders, the Class A Shares will be consolidated on a 1:4 basis, such that each holder of a Class A Share will receive approximately 0.25 Class A Shares for each Class A Share held (the “Consolidation”) and the existing Preferred Shares will be exchanged into approximately 0.68 Preferred Shares and 0.40 Class A Shares, such that a holder of 100 Preferred Shares of the Fund will receive approximately 68 Preferred Shares and 40 Class A Shares for each Preferred Share held

On June 21 they announced:

that shareholders of the Fund have approved a proposal to change the investment objectives, strategy and restrictions of the Fund and to amend the articles of the Fund (the “Amendments”), all as more particularly described in the Fund’s management information circular dated May 10, 2024 (the “Circular”), at a special meeting of the shareholders held earlier today.

… and on July 5 they announced:

– (TSX: PGIC/ PGIC.PR.A) Mulvihill Capital Management Inc., the manager of Premium Global Income Split Corp., formerly World Financial Split Corp. (the “Fund”), is pleased to announce that the reorganization of the Fund has been completed, which included a change to the Fund’s name, ticker symbols, investment objectives and strategies of the Fund and amendments to the articles of the Fund (the “Reorganization”).

As a result of the Reorganization, there are 446,654 Class A Shares and 446,654 Preferred Shares of the Fund issued and outstanding following the consolidation of the Class A Shares and the exchange of Preferred Shares into Class A Shares and a lesser number of Preferred Shares.

Poor old WFS! The issue got hammered during the Credit Crunch (see page 8 of the 2023 Annual Report) and never really recovered.

With 862,417 preferred shares outstanding as of 2023-12-31 (see page 23 of the 2023 Annual Report) and “approximately 0.68 [new] Preferred Shares” issued per old preferred share, there should be 586,444 new preferred shares outstanding before accounting for the special retraction, but the company reports 446,654 currently outstanding, which implies a 24% retraction rate.

But anyway, with such a small float, no credit rating (discontinued in 2010) and no NAV test for Capital Unit distributions … I’m finally dropping this issue from HIMIPref™ coverage.

WFS.PR.A was last extended in 2018. The 2011 extension resulted in a massive retraction.