PrefBlog

Royal Bank of Canada has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding Non-Viability Contingent Capital (NVCC) Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BF (RY.PR.M on TSX) (the “Series BF shares”) on November 24, 2020. There are currently 12,000,000 Series BF shares outstanding.

Subject to certain conditions set out in the prospectus supplement dated March 9, 2015 relating to the issuance of the Series BF shares, the holders of the Series BF shares have the right to convert all or part of their Series BF shares, on a one-for-one basis, into NVCC Non-Cumulative Floating Rate First Preferred Shares, Series BG (the “Series BG shares”) on November 24, 2020. On such date, holders who do not exercise their right to convert their Series BF shares into Series BG shares will continue to hold their Series BF shares. The foregoing conversion rights are subject to the following:

if Royal Bank of Canada determines that there would be less than 1,000,000 Series BG shares outstanding after taking into account all shares tendered for conversion on November 24, 2020, then holders of Series BF shares will not be entitled to convert their shares into Series BG shares, and
alternatively, if Royal Bank of Canada determines that there would remain outstanding less than 1,000,000 Series BF shares after taking into account all shares tendered for conversion on November 24, 2020, then all remaining Series BF shares will automatically be converted into Series BG shares on a one-for-one basis on November 24, 2020.
In either case, Royal Bank of Canada will give written notice to that effect to holders of Series BF shares no later than November 17, 2020.

The dividend rate applicable for the Series BF shares for the 5-year period from and including November 24, 2020 to, but excluding, November 24, 2025, and the dividend rate applicable to the Series BG shares for the 3-month period from and including November 24, 2020 to, but excluding, February 24, 2021, will be determined and announced by way of a press release on October 26, 2020.

Beneficial owners of Series BF shares who wish to exercise their conversion rights should instruct their broker or other nominee to exercise such rights during the conversion period, which runs from October 26, 2020 until 5:00 p.m. (EST) on November 9, 2020.

Inquiries should be directed to Shareholder Relations Officer, Shirley Boudreau, at 416-955-7806.

RY.PR.M is a FixedReset, 3.60%+262, NVCC-compliant, that commenced trading 2015-3-15 after being announced 2015-3-5. It is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

Partners Value Split Corp. did not issue a press release today on their site regarding the settlement of PVS.PR.I, although there is a notice on Bloomberg:

Partners Value Split Corp. (the “Company”) announced today the completion of its previously announced issue of 6,000,000 Class AA Preferred Shares, Series 11 (the “Series 11 Preferred Shares”) at an offering price of $25.00 per Series 11 Preferred Share, raising gross proceeds of $150,000,000. The Series 11 Preferred Shares carry quarterly fixed cumulative preferential dividends representing a 4.75% annualized yield on the offering price and have a final maturity of October 31, 2025. The Series 11 Preferred Shares have been listed and posted for trading on the Toronto Stock Exchange under the symbol PVS.PR.I. The net proceeds of the offering will be used to partially fund the redemption of the Company’s Class AA Preferred Shares, Series 6.

Prior to the closing of the offering, the Company subdivided the existing capital shares held by Partners Value Investments Inc. so that there are an equal number of preferred shares and capital shares outstanding.

I have also received a copy of a NYSE/ICE press release that states:

The Toronto Stock Exchange reports that Partners Value Split Corp.’s Class AA preferred shares, Series 11, will be listed at 5:01 p.m. on Oct. 5, 2020, for trading at the open on Oct. 6, 2020. According to the TSX, the listing will cover six million Series 11 shares to be issued in a public offering at $25 per share, pursuant to the terms of a prospectus supplement dated Sept. 29, 2020. The Series 11 shares will trade under the symbol PVS.PR.I, in Canadian dollars and under Cusip No. 70214J 86 3.

The TSX reports that the company will pay quarterly dividends on the Series 11 shares on or about March 7, June 7, Sept. 7 and Dec. 7 of each year at an annual dividend rate of $1.1875 per share. The initial dividend payment of 47.5 cents per Series 11 share will be payable on March 7, 2021, covering the period from the closing of the offering to Feb. 28, 2021.

According to the TSX, the Series 11 shares may be redeemed by the company at any time on or after Oct. 31, 2023, and before Oct. 31, 2025 (the redemption date), at a price that, prior to Oct. 31, 2024, will equal $25.50 per share plus accrued and unpaid dividends. The redemption price will decline by 50 cents per share on Oct. 31, 2024. All Series 11 shares outstanding on the redemption date will be redeemed for a cash amount equal to the lesser of $25 plus accrued and unpaid dividends, and the net asset value per unit.

Notwithstanding the first sentence of the previous paragraph, the company may redeem Series 11 shares before Oct. 31, 2023, for $26 per share plus accrued and unpaid dividends if, and will not redeem Series 11 shares before Oct. 31, 2023, unless: (i) capital shares have been retracted; or (ii) there is a takeover bid for the Brookfield Asset Management Inc. shares and the board of directors of the company determines that such bid is in the best interest of the holders of the capital shares.

PVS.PR.I is a SplitShare, 5-Year, 4.75%, announced 2020-9-25. It will be tracked by HIMIPref™ and has been added to the SplitShare subindex.

The long first coupon might lead to some interesting trade possibilities close to the ex-dividend date!

Vital statistics are:

The Toronto-Dominion Bank has announced (on October 1):

the applicable dividend rates for its Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 9 (Non-Viability Contingent Capital (NVCC)) (the “Series 9 Shares”) and Non-Cumulative Floating Rate Preferred Shares, Series 10 (NVCC) (the “Series 10 Shares”).

With respect to any Series 9 Shares that remain outstanding after November 2, 2020 (being the first business day following the conversion date of October 31, 2020, which falls on a Saturday), holders of the Series 9 Shares will be entitled to receive quarterly fixed non-cumulative preferential cash dividends, as and when declared by the Board of Directors of TD, subject to the provisions of the Bank Act (Canada). The dividend rate for the 5-year period from and including October 31, 2020 to but excluding October 31, 2025 will be 3.242%, being equal to the 5-Year Government of Canada bond yield determined as at October 1, 2020 plus 2.87%, as determined in accordance with the terms of the Series 9 Shares.

With respect to any Series 10 Shares that may be issued on November 2, 2020, holders of the Series 10 Shares will be entitled to receive quarterly floating rate non-cumulative preferential cash dividends, calculated on the basis of the actual number of days elapsed in such quarterly period divided by 365, as and when declared by the Board of Directors of TD, subject to the provisions of the Bank Act (Canada). The dividend rate for the floating rate period from and including October 31, 2020 to but excluding January 31, 2021, will be 3.006%, being equal to the 90-day Government of Canada Treasury Bill yield determined as of October 1, 2020 plus 2.87%, as determined in accordance with the terms of the Series 10 Shares.

Beneficial owners of Series 9 Shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee to obtain instructions for exercising such right on or prior to the deadline for exercise, which is 5:00 p.m. (Toronto time) on October 16, 2020.

Inquiries should be directed to TD’s Registrar and Transfer Agent, AST Trust Company (Canada), at 1-800-387-0825 (or in Toronto 416-682-3860).

TD.PF.E is a FixedReset, 3.70%+287, that commenced trading 2015-4-24 after being announced 2015-4-15. Notice of extension was provided on 2020-9-17. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.