PrefBlog

DBRS has announced (on 2023-11-22, they say, but I swear I looked and didn’t see it) that it:

upgraded the Issuer Rating, long-term obligations, and preferred shares credit ratings of Brookfield Corporation (BN or the Company) and its guaranteed subsidiaries, including BN’s Issuer Rating and Senior Notes to “A” from A (low) and its Preferred Shares rating to Pfd-2 from Pfd-2 (low). In addition, DBRS Morningstar confirmed the short-term credit ratings of BN and its guaranteed subsidiaries at R-1 (low). All trends are Stable. These actions remove the long-term and preferred share ratings on BN and its subsidiaries from Under Review with Positive Implications as well as the short-term ratings from Under Review with Developing Implications where they were placed on September 27, 2023, to conduct a review of the Company and the methodological approach to the credit ratings. For more information, please see the related press release here: https://www.dbrsmorningstar.com/research/421150/dbrs-morningstar-places-certain-ratings-of-brookfield-corporation-and-its-subsidiaries-under-review-with-positive-implications.

During the course of its review, DBRS Morningstar conducted a credit analysis of Brookfield Asset Management Ltd. (BAM) using the “Global Methodology for Rating Investment Management Companies” and of Brookfield Reinsurance Ltd. (BNRE) using the “Global Methodology for Rating Insurance Companies and Insurance Organizations.”

KEY CREDIT RATING CONSIDERATIONS
BN’s and its guaranteed subsidiaries credit ratings reflect the Company’s (1) position as the parent company of BAM (75% ownership), (2) position as the substantial owner of BNRE (majority economic interest), (3) position as the parent company of Brookfield Property Partners L.P. (BPY, rated BBB (low) with a Stable trend by DBRS Morningstar; 100% ownership), (4) position as the parent company of Brookfield Renewable Partners L.P. (BEP, rated BBB (high) with a Stable trend by DBRS Morningstar; 46% ownership), and (5) strong consolidated credit metrics, liquidity profile, and industry diversification. For each BN business that contributes a material portion of the Company’s consolidated distributable earnings or already had a DBRS Morningstar public credit rating, DBRS Morningstar assessed its credit quality based on its proportionate contribution, adjusted for BN’s ownership interest in the subsidiary (the Composite Rating). DBRS Morningstar then adjusted the Composite Rating for the following overlay factors: (1) the structural subordination on the leveraged cash flows from BNRE, BPY, and BEP, (2) the Company’s superior industry diversification, and (3) BN’s very strong liquidity. The result is an overall Issuer Rating of “A.”

CREDIT RATING DRIVERS
The credit ratings on the Company and its guaranteed subsidiaries reflect those of its primary business units and operating companies, namely BAM, BNRE, BPY, and BEP. Significant improvement in the credit risk profiles of one or more of these businesses may result in an upgrade of BN’s credit ratings.

Conversely, a deterioration in the credit risk profile(s) of BN’s primary business units and operating companies; a material increase in debt at the Company; debt at BAM that causes debt at BN to be structurally subordinated to a greater percentage of its cash flows; or a deterioration in governance controls may result in a downgrade of BN’s credit ratings.

CREDIT RATING RATIONALE

These credit rating actions reflect DBRS Morningstar’s assessment of BN’s key subsidiaries and overlay factors, including the following:

Subsidiaries
BAM—BAM’s credit profile benefits from its position as one of the largest alternative asset managers in the world, with more than $440 billion of fee-bearing capital, the majority of which is long term (10+ years) or perpetual in nature. Assets under management (AUM) have grown significantly in the last five years, indicative of BAM’s strong fundraising abilities, capital resources, and investment track record. BAM’s capital-light business model, growth in AUM, and high margins have resulted in strong earnings, the majority of which are distributed to BN. BAM also has no corporate debt and very strong liquidity. DBRS Morningstar’s assessment of BAM’s credit profile also considers that the nature of the funds it manages are relatively illiquid and that the current macroeconomic environment could result in increased impairments, defaults, and lower valuations in some of its investments. DBRS Morningstar notes that while in the short-term, this would not have a significant impact on the credit profile of BAM, in the medium to long term this could impact the ability for the business to continue to grow its fee-bearing capital.

BNRE—BNRE’s credit profile is supported by the expectation of improved market position and franchise strength over the near to medium term, particularly in the Annuity and Property and Casualty (P&C) business lines; improved earnings stability as it develops a sizable base of recurring premium revenues; and strong investment from BN to execute on its growth plan and to meet capital requirements. DBRS Morningstar’s assessment of BNRE’s credit profile also considers a limited track record of operations to assess historical profitability of the consolidated entity; the risk and uncertainty related to its aggressive growth plans; and that the credit and market risk of its investment portfolio, its financial leverage, and its capital needs are high relative to other insurers.

BPY—BPY’s credit profile benefits from its market position as a preeminent global real estate company; its high-quality assets (particularly the BPY Core Office and Retail segment) with long-term leases to large, recognizable investment-grade-rated tenants; and its superior diversification by property, tenant, and geography. BPY’s credit profile is constrained by its weak financial risk assessment as reflected in its highly leveraged balance sheet and low EBITDA interest coverage, a riskier retail leasing profile in terms of lease maturities and counterparty risk relative to its Core Office segment, and a higher-risk opportunistic Limited Partnership Investments segment composed of hotel, office, retail, mixed-used, housing, and alternative assets.

BEP—BEP’s credit profile is supported by its long-term contracts with diverse, solid-credit counterparties; its diversified and large generation asset portfolio; and its low environmental risk, low-cost and high-quality assets. DBRS Morningstar’s assessment also considers BEP’s expansion risk; refinancing and recontracting risk at the project level; and hydrology and wind resource risk.

Overlay Factors
Structural Subordination—DBRS Morningstar notes that BN finances its assets on a non-recourse basis without any parental guarantees or cross-collateralization. BN’s debt is structurally subordinated to the leveraged cash flows from BNRE, BPY, and BEP; however, there is no corporate debt held at BAM, which, along with Direct Investments, accounted for 54% of consolidated distributable earnings in the last 12 months ended September 30, 2023.

Diversification—DBRS Morningstar believes that the Company benefits from cash flow stability resulting from superior industry diversification of its business units and operating companies. BN’s cash flows are generated from diversified businesses comprising asset management, insurance solutions, real estate, private equity, infrastructure, and renewable power.

Liquidity—DBRS Morningstar considers BN’s liquidity to be very strong because of its $1.5 billion in cash and financial assets, $2.5 billion in undrawn and committed credit facilities, and $4.6 billion in annualized distributions at September 30, 2023. DBRS Morningstar also notes that, including perpetual affiliate liquidity and uncalled private fund commitments, BN and its subsidiaries had a total of $119 billion in liquidity as of September 30, 2023.

Issues affected are (deep breath): BN.PF.A, BN.PF.B, BN.PF.C, BN.PF.D, BN.PF.E, BN.PF.F, BN.PF.G, BN.PF.H, BN.PF.I, BN.PF.J, BN.PF.K, BN.PF.L, BN.PR.B, BN.PR.C, BN.PR.K, BN.PR.M, BN.PR.N, BN.PR.R, BN.PR.T, BN.PR.X and BN.PR.Z. Not to be forgotten is the Brookfield Investments Corporation, BRN.PR.A, which is not tracked by HIMIPref™.

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

Algonquin Power & Utilities Corp. has announced:

that it does not intend to exercise its right to redeem all or part of the currently outstanding 4,800,000 Cumulative Rate Reset Preferred Shares, Series A (the “Series A Preferred Shares”) on January 2, 2024. As a result, subject to certain conditions, the holders of the Series A Preferred Shares have the right to convert all or part of their Series A Preferred Shares, on a one-for-one basis, into Cumulative Floating Rate Preferred Shares, Series B (the “Series B Preferred Shares”) on January 2, 2024 (the “Conversion Date”).

The terms and conditions of the Series A Preferred Shares, including the right to convert, are described in the short form prospectus of the Company dated November 2, 2012, pursuant to which the Series A Preferred Shares were initially issued for an aggregate of C$120,000,000 (or C$25 per Series A Preferred Share).

Holders of Series A Preferred Shares who do not exercise their right to convert their Series A Preferred Shares into Series B Preferred Shares on the Conversion Date will retain their Series A Preferred Shares.

The dividend rate applicable to the Series A Preferred Shares for the 5-year period from and including December 31, 2023 to but excluding December 31, 2028, and the dividend rate applicable to the Series B Preferred Shares for the 3-month period from and including December 31, 2023 to but excluding March 31, 2024, will be determined and announced by the Company by way of a news release on December 4, 2023.

Beneficial owners of Series A Preferred Shares who wish to exercise their conversion right during the conversion period, which runs from December 4, 2023 to December 18, 2023 at 5:00 p.m. (EST), should communicate as soon as possible with their broker or other nominee for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other nominee time to complete the necessary steps. Any notices received after this deadline will not be valid.

The foregoing conversion rights are subject to the following conditions:

if AQN determines that there would be outstanding on the Conversion Date fewer than 1,000,000 Series B Preferred Shares, after having taken into account all Series A Preferred Shares tendered for conversion into Series B Preferred Shares, then holders of Series A Preferred Shares will not be entitled to convert their Series A Preferred Shares into Series B Preferred Shares, and

alternatively, if AQN determines that there would remain outstanding on the Conversion Date fewer than 1,000,000 Series A Preferred Shares, after having taken into account all Series A Preferred Shares tendered for conversion into Series B Preferred Shares, then all remaining Series A Preferred Shares will automatically be converted into Series B Preferred Shares without the consent of the holders of Series A Preferred Shares, on a one-for-one basis, on the Conversion Date.
In either case, AQN will give written notice to that effect to the registered holder of Series A Preferred Shares no later than December 27, 2023.

About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission, and distribution utility with approximately $18 billion of total assets. AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. In addition, AQN owns, operates, and/or has net interests in over 4 GW of installed renewable energy capacity.

AQN’s common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN’s common shares, Series 2019-A subordinated notes and equity units are listed on the New York Stock Exchange under the symbols AQN, AQNB, and AQNU, respectively.

Visit AQN at www.algonquinpowerandutilities.com and follow us on Twitter @AQN_Utilities.

AQN.PR.A is a FixedReset, 4.50%+294, that commenced trading 2012-11-9 after being announced 2012-10-25. The 2018-11-28 notice of extension was reported on PrefBlog. The issue reset at 5.162% effective December 31, 2018. I recommended against conversion and there was no conversion. The issue is tracked by HIMIPref™, but relegated to the Scraps – FixedReset Discount index on credit concerns.

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

AltaGas Ltd. has announced:

its intention to redeem – in accordance with the terms of the Cumulative Redeemable 5-Year Rate Reset Preferred Shares, Series E (the “Series E Shares”) as set out in the Company’s articles – all of its 8,000,000 issued and outstanding Series E Shares on December 31, 2023 (the “Redemption Date”) for a redemption price equal to $25.00 per Series E Share, together with all accrued and unpaid dividends to, but excluding, the Redemption Date (the “Redemption Price”), less any tax required to be deducted or withheld by the Company.

As outlined in the November 10, 2023 press release, AltaGas intends to use the net proceeds from the $200 million of 8.90% Fixed-to-Fixed Rate Subordinated Notes, Series 3 due November 10, 2083 to redeem or repurchase its outstanding Series E Shares.

The Company has provided notice today of the Redemption Price and the 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. Questions regarding the redemption process may be directed to Computershare Investor Services Inc. at 1-800-564-6253 or by email to corporateactions@computershare.com.

This is a bit of an anticlimax, since they already announced the closing of an issuance of hybrid notes to fund it:

AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) today announced that it has closed its previously announced offering of $200 million of 8.90% Fixed-to-Fixed Rate Subordinated Notes, Series 3 due November 10, 2083 (the “Offering”).

The Company intends to use the net proceeds of the Offering to redeem or repurchase its outstanding cumulative redeemable five-year rate reset preferred shares, series E (TSX: ALA.PR.E) (the “Series E Preferred Shares). Series E Preferred Share dividends are not deductible for tax purposes and are subject to part 6.1 tax at 40 percent. As a result of the Offering, based on current rates, AltaGas expects to save approximately $10 million or $0.01 of annual earnings per share during the initial five-year term of the subordinated notes due to lower taxes and financing charges relative to what the reset rate would have been on the Series E Preferred Share dividends.

The subordinated notes are being offered through a syndicate of underwriters, co-led by CIBC Capital Markets and RBC Capital Markets, under AltaGas’ short form base shelf prospectus dated March 31, 2023, as supplemented by a prospectus supplement dated November 7, 2023.

These subordinated/hybrid notes look a lot like LRCNs but have a step-up in interest rate, which would disqualify them from being Tier 1 Capital for banks and insurers.

ALA.PR.E was issued as a FixedReset, 5.00%+317, that commenced trading 2013-12-13 after being announced 2013-12-4. The 2018-11-28 notice of extension was reported on PrefBlog. The issue reset at 5.393% effective December 31, 2018. I recommended against conversion and there was no conversion. The company announced earlier in November that it was considering redemption. The issue is tracked by HIMIPref™ but is relegated to the Scraps – FixedReset Discount subindex due to credit concerns.

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

Dundee Corporation has announced:

that it intends to commence a substantial issuer bid (the “Offer”) to purchase for cancellation from the holders thereof who choose to participate up to 975,610 of its Cumulative Floating Rate First Preference Shares, Series 3 in the capital of the Corporation (the “Series 3 Shares”) at a purchase price of C$20.50 (the “Purchase Price”) per Series 3 Share, for a maximum aggregate purchase price of C$20,000,005.

In connection with the Offer, the Corporation has entered into lock-up agreements (the “Lock-up Agreements”) with each of Stornoway Recovery Fund LP and Ravensource Fund (the “Locked-up Shareholders”) pursuant to which, among other things, and subject to the terms and conditions set out therein, the Locked-up Shareholders have agreed to tender to the Offer all of the Series 3 Shares held by them as at the date of the Lock-up Agreements. As at the date of the Lock-up Agreements, the Locked-up Shareholders hold an aggregate of 499,650 Series 3 Shares representing approximately 30.48% of the issued and outstanding Series 3 Shares as at November 20, 2023.

The Offer is expected to commence on November 22, 2023 and will expire at 11:59 p.m. (Toronto time) on December 27, 2023 or such later time and date to which the Offer may be extended by Dundee, unless varied or withdrawn by Dundee.

“This Offer is another important step towards the ongoing streamlining of our capital structure to support the successful execution of our strategic business plan with a focus on capital allocation in the junior mining industry. Reducing the call on our capital from the preferred share dividends preserves our capital base to pursue our core strategy,” said Jonathan Goodman, President and Chief Executive Officer.

“We believe this is an effective way to simplify our balance sheet, lower our overall cost of capital, and reduce our run-rate cash outflows which benefits all classes of shareholders,” said Lila Murphy, Executive Vice President and Chief Financial Officer.

The Board of Directors will continue to review various options for the allocation of capital, including any portion of the C$20,000,005 under the Offer remaining in excess of the aggregate purchase price payable pursuant to the Offer, with such options including, but not limited to, further repurchases of the Corporation’s securities, including without limitation, its Class A Subordinate Voting Shares and Series 2 Shares (as defined below). Beginning in early 2018, the Corporation has focused on the implementation of its strategy of rationalizing its portfolio of investments and monetizing non-core assets as it exists [sic] business lines which are no longer deemed to be aligned with its longer-term mining-focused strategy. As part of this process, the Corporation has taken significant steps to streamline its capital structure and strengthen its balance sheet. In line with the Corporation’s longer-term strategy and commitment to creating value for the Corporation, the Board of Directors believes that the purchase of Series 3 Shares under the Offer represents an attractive investment opportunity for Dundee and will be welcomed by certain holders of Series 3 Shares who may wish to reduce their share ownership positions.

Treatment of Declared Dividend

The Corporation previously announced on November 8, 2023, that the Board of Directors approved the payment of a quarterly cash dividend for the quarter ended December 31, 2023 of C$0.58351 per Series 3 Share, which is payable on January 2, 2024 to shareholders of record on December 19, 2023 (the “Series 3 Dividend Record Date”). Shareholders of record on the Series 3 Dividend Record Date will be entitled to receive the quarterly cash dividend declared by the Board of Directors for each Series 3 Share held on the Series 3 Dividend Record Date, whether or not such shareholders decide to deposit their Series 3 Shares under the Offer and whether or not all or any portion of their Series 3 Shares are taken up and paid for by the Corporation pursuant to the Offer, and whether or not such shareholders continue to hold some or all of such Series 3 Shares following the Series 3 Dividend Record Date. Such quarterly cash dividend will be paid by the Corporation on January 2, 2024 to shareholders of record on the Series 3 Dividend Record Date (less any tax required to be deducted or withheld by the Corporation) in accordance with the restated articles of the Corporation. Any shareholder who acquires Series 3 Shares after the Series 3 Dividend Record Date will not, in respect of such Series 3 Shares acquired by them after the Series 3 Dividend Record Date, under any circumstances be entitled to receive from the Corporation the quarterly cash dividend declared by the Board of Directors for the quarter ended December 31, 2023, nor will such shareholder be entitled to receive any pro-rata portion of such quarterly cash dividend, irrespective of whether or not such shareholder decides to deposit such Series 3 Shares under the Offer and whether or not all or any portion of such Series 3 Shares are taken up and paid for by the Corporation pursuant to the Offer. The terms of the Offer reflect and take into account that the quarterly cash dividend for the quarter ended December 31, 2023 of C$0.58351 per Series 3 Share will be paid by the Corporation to shareholders of record on the Series 3 Dividend Record Date on January 2, 2024 (less any tax required to be deducted or withheld by the Corporation) in accordance with the restated articles of the Corporation. Holders of record of Cumulative 5-Year Rate Reset First Preference Shares, Series 2 (the “Series 2 Shares”) on the dividend record date for the quarterly cash dividend declared by the Board of Directors on such Series 2 Shares for the quarter ended December 31, 2023 will be entitled to receive such quarterly cash dividend, with such quarterly cash dividend to be paid by the Corporation on January 2, 2024 (less any tax required to be deducted or withheld by the Corporation) in accordance with the restated articles of the Corporation. In accordance with the restated articles of the Corporation, the Corporation has set aside for payment out of cash on hand sufficient funds to satisfy all declared and unpaid dividends on outstanding Series 3 Shares and outstanding Series 2 Shares.

Additional Details of the Offer

The Corporation expects to fund any purchases of Series 3 Shares under the Offer using first the funds advanced under the Loan (as defined below) and then as necessary using the Corporation’s available cash on hand, and expects to fund any fees and expenses related to the Offer using the Corporation’s available cash on hand. All Series 3 Shares purchased by the Corporation under the Offer will be cancelled in due course.

If 975,610 or fewer Series 3 Shares are validly deposited on or before the expiry time of the Offer (and not properly withdrawn), then Dundee will, upon the terms and subject to the conditions of the Offer, purchase at the Purchase Price all such Series 3 Shares deposited. If more than 975,610 Series 3 Shares are validly deposited on or before the expiry time of the Offer (and not properly withdrawn), then upon the terms and subject to the conditions of the Offer, the Corporation will purchase the Series 3 Shares on a pro rata basis after giving effect to “odd lot” tenders (of holders beneficially owning fewer than 100 Series 3 Shares), which will not be subject to pro-ration. Series 3 Shares that are not purchased will be returned to shareholders.

The Offer and all deposits of Series 3 Shares are subject to the terms and conditions set forth in the offer to purchase, the accompanying issuer bid circular and the related letter of transmittal and notice of guaranteed delivery (all such documents, as amended or supplemented from time to time, collectively constitute and are herein referred to as, the “Offer Documents”). Further details of the Offer, including the terms and conditions thereof and instructions for tendering Series 3 Shares, will be included in the Offer Documents. The Offer Documents will be mailed to holders of Series 3 Shares, filed with the applicable Canadian securities regulatory authorities and made available without charge on SEDAR+ at www.sedarplus.ca in accordance with applicable securities laws, as well as being posted on the Corporation’s website at www.dundeecorporation.com, on November 22, 2023.

As of November 20, 2023, the Corporation had 1,639,022 Series 3 Shares issued and outstanding. The Series 3 Shares are listed and posted for trading on the Toronto Stock Exchange (the “TSX”) under the symbol “DC.PR.D”. On November 17, 2023, the last full trading day prior to the day the terms of the Offer were publicly announced, the closing price of the Series 3 Shares on the TSX was C$20.20.

The Offer will not be conditional upon any minimum number of Series 3 Shares being deposited. However, the Offer will be subject to certain conditions that are customary for transactions of this nature and as will be set out in more detail in the Offer Documents.

Dundee previously received approval from the TSX for normal course issuer bids (“NCIBs”) for its Series 2 Shares and Series 3 Shares through the facilities of the TSX from April 12, 2023 to April 11, 2024. The Corporation has suspended share repurchases under its NCIBs and the NCIBs will remain suspended until at least the day following the expiration of the Offer or the termination of the Offer.

Dundee has appointed Computershare Investor Services Inc. (the “Depositary”) to act as depositary for the Offer. Any questions or requests for information or assistance regarding the Offer may be directed to the Depositary at the contact details set out in the Offer Documents.

Additional Details of the Loan

In connection with the Offer, the Corporation has entered into a loan agreement dated November 17, 2023 (the “Loan Agreement”) among the Corporation, as borrower, Dundee Resources Limited, as guarantor, and Earlston Investments Corp., as lender. The loan, to be advanced by the lender, will be in a principal amount of up to C$20,000,000 and will be available to the Corporation upon satisfaction of certain customary conditions precedent (the “Loan”). The Loan will be guaranteed by Dundee Resources Limited and secured by a security interest over all present and after-acquired personal property of the Corporation and Dundee Resources Limited, including a pledge of the shares of Reunion Gold Corporation held by Dundee Resources Limited (such shares of Reunion Gold Corporation, the “Collateral”). The Loan Agreement provides that the Corporation shall use the proceeds of the Loan to repurchase all or any portion of the Series 3 Shares pursuant to the Offer, and for no other purpose, except with the prior written consent of the lender. Interest on the Loan will accrue: (i) at a rate equal to the greater of (a) The Toronto-Dominion Bank prime rate plus 1.95% per annum, and (b) 9.15% per annum, during the first 24 months of the Loan; and (ii) thereafter, at a rate equal to The Toronto-Dominion Bank prime rate plus 6.50% per annum. The Loan will be repayable on February 27, 2026. At any time after June 28, 2024, the Corporation may voluntarily prepay all or any portion of the Loan together with all interest accrued thereon without premium or penalty. The Corporation must repay (i) any portion of the Loan not used to fund the purchase of Series 3 Shares under the Offer, (ii) periodically, if the value of the Collateral is not at least 250% of the outstanding principal amount of the Loan plus overdue interest (if any), such amount as required to ensure the value of the Collateral is at least 250% of the outstanding principal amount of the Loan plus overdue interest (if any), and (iii) if Dundee Resources Limited sells any of the Collateral in certain circumstances as set out in the Loan Agreement, an amount equal to the net proceeds of such sale.

This news release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell any Series 3 Shares. The solicitation and the offer to buy Series 3 Shares will only be made pursuant to the Offer Documents filed with the Canadian securities regulatory authorities. The Offer will not be made to, nor will deposits be accepted from or on behalf of, shareholders in any jurisdiction in which the making or acceptance of the Offer would not be in compliance with the laws of any such jurisdiction. However, Dundee may, in its sole discretion, take such action as it may deem necessary to make the Offer in any such jurisdiction and to extend the Offer to shareholders in any such jurisdiction.

The Board of Directors has authorized and approved the Offer. However, none of Dundee, the Board of Directors or the Depositary makes any recommendation to any shareholder as to whether to deposit or refrain from depositing any or all of such shareholder’s Series 3 Shares pursuant to the Offer. Shareholders are strongly urged to carefully review and evaluate all information provided in the Offer Documents, to consult with their own financial, legal, investment, tax and other professional advisors and to make their own decisions as to whether to deposit Series 3 Shares under the Offer and, if so, how many Series 3 Shares to deposit.

The affected issue is DC.PR.D, although the company may buy back other shares if there’s any money left over from the loan following the purchase of tendered shares.

Thanks to Assiduous Reader Dan Good for bringing this to my attention, to Avoid the Herd for foreshadowing the announcement and to DR, niagara and skeptical for helping me understand how this can make financial sense.

Update, 2023-11-24: The discussion initiated by Dan Good included some questioning regarding why DC.PR.B was not included in the SIB, given that it is interconvertible with DC.PR.D at the next Exchange Date, 2024-9-30. My guess is that the lock-up agreements referred to in the second paragraph of the press release played a role in this: the locked-up shareholeders, I presume, hold lots of DC.PR.D and want to dispose of them all at the favourable price they have negotiated; including DC.PR.B in the SIB would increase the chance that their tender would be pro-rated on closing.