PrefBlog

The Toronto-Dominion Bank has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding 20 million Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 5 (Non-Viability Contingent Capital (NVCC)) (the “Series 5 Shares”) of TD on January 31, 2020. As a result and subject to certain conditions set out in the prospectus supplement dated December 9, 2014 relating to the issuance of the Series 5 Shares, the holders of the Series 5 Shares have the right to convert all or part of their Series 5 Shares, on a one-for-one basis, into Non-Cumulative Floating Rate Preferred Shares, Series 6 (NVCC) (the “Series 6 Shares”) of TD on January 31, 2020. Holders who do not exercise their right to convert their Series 5 Shares into Series 6 Shares on such date will continue to hold their Series 5 Shares.

The foregoing conversion right is subject to the conditions that: (i) if TD determines that there would be less than 1,000,000 Series 6 Shares outstanding after taking into account all shares tendered for conversion on January 31, 2020, then holders of Series 5 Shares will not be entitled to convert their shares into Series 6 Shares, and (ii) alternatively, if TD determines that there would remain outstanding less than 1,000,000 Series 5 Shares after taking into account all shares tendered for conversion on January 31, 2020, then all remaining Series 5 Shares will automatically be converted into Series 6 Shares on a one-for-one basis on January 31, 2020. In either case, TD will give written notice to that effect to holders of Series 5 Shares no later than January 24, 2020.

The dividend rate applicable to the Series 5 Shares for the 5-year period from and including January 31, 2020 to but excluding January 31, 2025, and the dividend rate applicable to the Series 6 Shares for the 3-month period from and including January 31, 2020 to but excluding April 30, 2020, will be determined and announced by way of a press release on January 2, 2020.

Beneficial owners of Series 5 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 during the conversion period, which runs from January 2, 2020 until 5:00 p.m. (Toronto time) on January 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.C is a FixedReset, 3.75%+225, that commenced trading 2014-12-16 after being announced 2014-12-5. It is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

Canadian Imperial Bank of Commerce has announced (on December 12):

that it does not intend to exercise its right to redeem all or any part of its currently outstanding 12,000,000 Non-cumulative Rate Reset Class A Preferred Shares Series 41 (Non-Viability Contingent Capital (NVCC)) (the “Series 41 Shares”) on January 31, 2020.

Subject to certain conditions set out in the prospectus supplement dated December 8, 2014 relating to the issuance of the Series 41 Shares, the holders of Series 41 Shares have the right to convert all or any of their Series 41 Shares, on a one-for-one basis, into Non-cumulative Floating Rate Class A Preferred Shares Series 42 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 42 Shares”) on January 31, 2020.

On such date, holders who do not exercise their right to convert their Series 41 Shares into Series 42 Shares, will continue to hold their Series 41 Shares. The foregoing conversion rights are subject to the following:

if CIBC determines that there would remain outstanding less than 1,000,000 Series 42 Shares, after having taken into account all Series 41 Shares tendered for conversion on January 31, 2020, then holders of Series 41 Shares will not be entitled to convert their shares into Series 42 Shares, and

alternatively, if CIBC determines that there would remain outstanding less than 1,000,000 Series 41 Shares, after having taken into account all Series 41 Shares tendered for conversion on January 31, 2020, then all, but not part, of the remaining outstanding Series 41 Shares will automatically be converted into Series 42 Shares on a one-for-one basis on January 31, 2020.
In either case, CIBC will give written notice to that effect to the registered holder of Series 41 Shares no later than January 24, 2020.

The dividend rate applicable to the Series 41 Shares, should any remain outstanding after January 31, 2020, for the five-year period from and including January 31, 2020 to but excluding January 31, 2025, and the dividend rate applicable to the Series 42 Shares, should any be issued, for the three-month period from and including January 31, 2020 to but excluding April 30, 2020, as and when declared by the Board of Directors of CIBC, will be calculated and announced on December 31, 2019. CIBC has designated the Series 42 Shares as eligible to participate in the CIBC Shareholder Investment Plan.

Beneficial owners of Series 41 Shares who wish to excise their conversion right should instruct their broker or other nominee to exercise such right during the conversion period, which runs from January 1, 2020 until 5:00 p.m. (Eastern Standard Time) on January 16, 2020. 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.

CM.PR.P is a FixedReset, 3.75%+224, that commenced trading 2014-12-16 after being announced 2014-12-8. It is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced:

that after having taken into account all election notices received by the December 16, 2019 deadline for the conversion of the Class AAA Preference Shares, Series AA (the “Series AA Shares”) (TSX: BPO.PR.A) into Class AAA Preference Shares, Series BB (the “Series BB Shares”), the holders of Series AA Shares are not entitled to convert their Series AA Shares into Series BB Shares. There were 167,613 Series AA Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series BB Shares.

The Series AA Shares will pay on a quarterly basis, for the five-year period beginning on January 1, 2020, as and when declared by the board of directors of Brookfield, a fixed dividend based on an annual dividend rate of 4.709% (C$0.294313 per share per quarter).

BPO.PR.A is a FixedReset, 4.75%+315, that commenced trading 2014-10-23 after being announced 2014-10-7. BPO.PR.A will reset at 4.709% effective January 1, 2020. The issue is tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

Husky Energy has announced (on December 18):

that 71,606 Cumulative Redeemable Preferred Shares, Series 3 (Series 3 Shares) were tendered for conversion, which is less than the one million shares required to give effect to conversion into Cumulative Redeemable Preferred Shares, Series 4 (Series 4 Shares).

As a result, none of the Series 3 Shares will be converted into Series 4 Shares on December 31, 2019.

HSE.PR.C is a FixedReset, 4.50%+313, that commenced trading 2014-12-9 after being announced 2014-12-1. The initial reset rate announcement was quickly determined to be anomalous and eventually corrected. HSE.PR.C will reset at 4.689% effective December 31, 2019. The issue is tracked by HIMIPref™ and is been assigned to the FixedResets-Discount subindex.

DBRS has announced that it:

maintains its Under Review with Developing Implications status on the Pfd-4 rating of GMP Capital Inc.’s (GMP or the Company) Cumulative Preferred Shares. The rating was initially put Under Review with Developing Implications on June 18, 2019, following the announcement that GMP had agreed to sell substantially all of its capital markets business to Stifel Financial Corp. (Stifel). The review was maintained on September 18, 2019, as the transaction had yet to close.
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KEY RATING CONSIDERATIONS
The continuation of the review period takes into consideration that the future ultimate ownership and structure of GMP’s business has still not been finalized. DBRS Morningstar will assess GMP’s pro forma structure once it is known whether or not GMP is able to consolidate full ownership of Richardson GMP. This assessment will review the assets and liabilities composition, the Company’s ownership, the Company’s future strategic direction, and management’s ability to execute on this plan.

RATING DRIVERS
DBRS Morningstar could upgrade the rating if GMP’s franchise prospects and its post-transaction pro forma financials are deemed to be stronger with the consolidation of Richardson GMP. Conversely, the rating could be downgraded if GMP’s credit fundamentals weaken.

GMP was downgraded to Pfd-4(high) by DBRS in 2016. It was put on Review-Developing in June, 2019 and the review was extended in September, 2019.