PrefBlog

On October 31, Timbercreek Asset Management announced:

5Banc Split Inc. (the “Company”) (TSX: FBS.B) (TSX: FBS.PR.C) announced today that, in accordance with the expiration of the term and as set out in the short form prospectus of the Company dated December 8, 2011 (the “Prospectus”), the Company will redeem all outstanding Class C Preferred Shares and Class B Capital Shares (collectively, the “Shares”) on December 15, 2016 (the “Redemption Date”) as scheduled and in accordance with their share provisions.

Prior to the Redemption Date, Timbercreek Asset Management Ltd. will sell the Company’s portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank to fund the redemptions. On the Redemption Date, in accordance with the share provisions for the Shares, holders of Class C Preferred Shares shall be entitled to receive a redemption price per share equal to the lesser of $10.00 and the Company’s unit value. Holders of Class B Capital Shares shall be entitled to receive a redemption price per share equal to the amount by which the unit value exceeds $10.00, or provided the holder tenders to the Company at least 20 business days prior to the Redemption Date a cash amount of $10.00 for each Class B Capital Share redeemed, such holder’s pro rata share of the Company’s portfolio of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank common shares plus (or minus) the pro rata share of the amount by which the value of the other assets of the Company exceed (or are less than) the liabilities of the Company as at the Redemption Date and the redemption value at the Class E Shares.

The Company was established to provide holders of Class C Preferred Shares with fixed cumulative preferential dividends, while providing holders of the Class B Capital Shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank. In that respect, as of August 15, 2016, the Class C Preferred Shares, since the reorganization on December 15, 2011, have generated a consistent 4.75% annual yield, with no change to the par value, while the Class B Capital Shares have delivered a net capital appreciation of 15.14% annualized, which compares to the underlying stock appreciation of 9.29%.

Information concerning 5Banc Split Inc. is available on our website at
http://www.timbercreek.com/investments/managed-companies/5banc-split-inc/overview

They have now announced (although not yet on their website):

5Banc Split Inc. (the “Company”) (TSX:FBS.B)(TSX:FBS.PR.C) announced today that in connection with the previously announced upcoming maturity of the fund on December 15, 2016, 1,077,529 Class C Preferred Shares and 1,077,529 Class B Capital Shares have been tendered for redemption on December 15, 2016. The redemption price paid for the Class C Preferred Shares will be $10.00 per Class C Preferred Share, and the redemption price for the Class B Capital Shares will be $27.51 per Class B Capital Share.

Holders of Class B Capital Shares tendered 136,043 Class B Capital Shares (representing approximately 12.63% of the outstanding Class B Capital Shares), together with a cash amount of $10.00 per Class B Capital Share tendered (together, a “5Banc Split Unit”), in exchange for the holder’s pro rata share of the Company’s shares of Toronto Dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Bank of Montreal.

Payments of cash and delivery of the underlying portfolio shares owing to shareholders as a result of the final redemptions will be made by the Company on December 15, 2016.

FBS.PR.C has been tracked by HIMIPref™ but relegated to the Scraps subindex on volume concerns.

The issue was recently upgraded to Pfd-2(high) by DBRS. FBS.PR.C was issued to refund FBS.PR.B; the company sponsorship was sold by TD to Timbercreek in 2014.

ECN Capital Corp. has announced:

that it has closed the previously announced offering of 4,000,000 6.50% Cumulative 5-Year Minimum Rate Reset Preferred Shares, Series A (the “Series A Preferred Shares” or the “Offering”) at a price of $25.00 per share for aggregate gross proceeds of $100,000,000. The Offering was conducted by a syndicate of underwriters led by BMO Capital Markets, CIBC World Markets, National Bank Financial, RBC Capital Markets, TD Securities, Desjardins Securities, Cormark Securities, GMP Securities, HSBC Securities (Canada) and Raymond James.

The net proceeds will be be used to originate and finance, directly and indirectly, finance assets and for general corporate purposes.

The Series A Preferred Shares will commence trading today on the Toronto Stock Exchange under the symbol “ECN.PR.A”.

The Company also filed on November 22, 2016 its interim carve-out financial statements as at and for the three and nine-month periods ended September 30, 2016, together with its amended management’s discussion and analysis of financial condition and results of operations for the same period (which non material amendments relate to non-GAAP financial measures, results of operations and related party transactions). These documents were filed on SEDAR and are incorporated by reference into the Corporation’s prospectus in connection with the Offering. For more information, please visit SEDAR at www.sedar.com.

ECN.PR.A is a FixedReset, 6.50%+544M650, announced 2016-11-23. It will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

The issue traded 134,385 shares today in a range of 24.30-65 before closing at 24.32-40, 3×1. Vital statistics are:

BCE Inc. has released its Notice of Conversion Privilege for BCE.PR.K:

1. Holders of BCE Inc. fixed-rate Series AK Preferred Shares have the right to convert all or part of their shares, effective on December 31, 2016, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AL of BCE Inc. (the “Series AL Preferred Shares”). In order to convert their shares, holders must exercise their right of conversion during the conversion period, which runs from December 1, 2016 until 5:00 p.m. (Montréal/Toronto time) on December 16, 2016.
…
4. As of December 31, 2016, the Series AK Preferred Shares will, should they remain outstanding, pay, on a quarterly basis, as and when declared by the Board of Directors of BCE Inc., a fixed cash dividend for the following five years that will be based on a fixed rate equal to the sum of: (a) the yield to maturity compounded semi-annually (the “Government of Canada Yield”), computed on December 1, 2016 in accordance with the articles of BCE Inc., of a Canadian dollar denominated non-callable Government of Canada bond with a term to maturity of five years, and (b) 1.88%. The “Government of Canada Yield” computed on December 1, 2016 is 1.074%. Accordingly, the annual fixed dividend rate applicable to the Series AK Preferred Shares for the period of five years beginning on December 31, 2016 will be 2.954%.

5. As of December 31, 2016, the Series AL Preferred Shares, if issued, will pay, for each quarterly period beginning with the quarterly period from and including December 31, 2016 up to but excluding March 31, 2017, as and when declared by the Board of Directors of BCE Inc., a quarterly floating dividend rate equal to the “Floating Quarterly Dividend Rate” for such quarterly period. The “Floating Quarterly Dividend Rate” for any such quarterly period shall be equal to the rate, expressed as a percentage, equal to the sum of:
(a) the “T-Bill Rate”, calculated in accordance with the articles of BCE Inc. on the 30th day prior to the first day of the new quarterly period, and (b) 1.88%, calculated on the basis of the actual number of days in such quarterly period divided by 365. The “T-Bill Rate” means, for any quarterly period, the average yield expressed as a percentage per annum on three-month Government of Canada Treasury Bills, as reported by the Bank of Canada, for the most recent treasury bills auction preceding the applicable calculation date. The “Floating Quarterly Dividend Rate” computed on December 1, 2016 and applicable to the Series AL Preferred Shares for the quarterly period beginning on December 31, 2016 will be 0.58907% (annual rate of 2.389%, based on an initial T-Bill Rate of 0.509%).

BCE.PR.K is a FixedReset, 4.15%+188, that commenced trading 2011-7-5 after being announced 2011-6-20. The issue is notorious for having been to subject of an experiment by BCE to see if stockbrokers and their clients were really as dumb as all that; this was tested by reopening the issue when the spread was nowhere near market rates. The experiment concluded that giving the salesmen a 3% commission on sales to retail is a great business, at which point the experimenters sent another letter to the OSC decrying trailer fees on mutual funds and collapsed in giggles.

I will make a recommendation regarding whether this issue should be converted or held in the near future.

Sun Life Financial Inc. has announced (although not yet on their website because they’re morons):

the dividend rates for its Class A Non-Cumulative Rate Reset Preferred Shares Series 12R (the “Series 12R Shares”) and Class A Non-Cumulative Floating Rate Preferred Shares Series 13QR (the “Series 13QR Shares”).

With respect to any Series 12R Shares that remain outstanding after December 31, 2016, commencing as of that date, holders thereof will be entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Sun Life Financial and subject to the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on December 31, 2016 to but excluding December 31, 2021 will be 3.806% per annum or $0.237875 per share per quarter, being equal to the sum of the five year Government of Canada Yield, as defined in the terms of the Series 12R Shares, on Thursday, December 1, 2016 plus 2.73%, as determined in accordance with the terms of the Series 12R Shares.

With respect to any Series 13QR Shares that are issued on December 31, 2016, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Sun Life Financial and subject to the Insurance Companies Act (Canada), based on a dividend rate equal to the sum of the three month T-Bill Rate, as defined in the terms of the Series 13QR Shares, plus 2.73% (calculated on the basis of the actual number of days elapsed in such Quarterly Floating Rate Period divided by 365 days), subject to certain adjustments in accordance with the terms of the Series 13QR Shares. The dividend rate for the period commencing on December 31, 2016 to but excluding March 31, 2017 will be equal to 3.239% per annum or $0.199664 per share, as determined in accordance with the terms of the Series 13QR Shares.

Beneficial owners of Series 12R Shares who wish to exercise the right of conversion applicable to those shares should communicate as soon as possible with their broker or other nominee and should ensure that their instructions are followed in order to meet the deadline to exercise such right of conversion, which is 5:00 p.m. (ET) on Friday, December 16, 2016.

An application will be made to list the Series 13QR Shares on the Toronto Stock Exchange.

The term extension for SLF.PR.I was previously reported on PrefBlog. I will make a recommendation regarding holding or converting the shares in the near future.