PrefBlog

Brookfield Renewable Partners L.P. has announced (on 2021-7-2):

that it intends to redeem all of its outstanding Class A Preferred Limited Partnership Units, Series 9 (the “Series 9 Preferred Units”) (TSX: BEP.PR.I) for cash on July 31, 2021. The redemption price for each Series 9 Preferred Unit will be C$25.00. Holders of Series 9 Preferred Units of record as of July 15, 2021 will receive the previously declared final quarterly distribution of $0.359375 per Series 9 Preferred Unit.

BEP.PR.I was a FixedReset, 5.75%+501M575, that commenced trading 2016-5-25 after being announced 2016-5-16. The issue was tracked by HIMIPref™ but was relegated to the Scraps subindex on credit concerns.

Brookfield Asset Management Inc. has announced (on 2021-6-1):

that it has determined the fixed dividend rate on its Cumulative Class A Preference Shares, Series 24 (“Series 24 Shares”) (TSX: BAM.PR.R) for the five years commencing July 1, 2021 and ending June 30, 2026, and also determined the quarterly dividend on its floating rate Cumulative Class A Preference Shares, Series 25 (“Series 25 Shares”) (TSX: BAM.PR.S).

If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2021 will be paid at an annual rate of 3.237% ($0.2023125 per share per quarter).

Holders of Series 24 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series 24 Shares, on a one-for-one basis, into Series 25 Shares, effective June 30, 2021. The quarterly floating rate dividends on the Series 25 Shares will be paid at an annual rate, calculated for each quarter, of 2.30% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2021 to September 30, 2021 dividend period will be 0.6072% (2.409% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.1518 per share, payable on September 30, 2021.

Holders of Series 25 Shares also have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series 25 Shares, on a one-for-one basis, into Series 24 Shares, effective June 30, 2021. Holders of the Series 25 Shares who elect to convert their shares by the conversion deadline will receive Series 24 Shares, effective June 30, 2021 and will be entitled to receive, if declared, the fixed-rate dividend as described above.

Holders of Series 24 Shares are not required to elect to convert all or any part of their Series 24 Shares into Series 25 Shares and holders of Series 25 Shares are not required to elect to convert all or any part of their Series 25 Shares into Series 24 Shares.

As provided in the share conditions of the Series 24 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 24 Shares outstanding after June 30, 2021, all remaining Series 24 Shares will be automatically converted into Series 25 Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 25 Shares outstanding after June 30, 2021, no Series 24 Shares will be permitted to be converted into Series 25 Shares. There are currently 9,278,894 Series 24 Shares outstanding.

Similarly, as provided in the share conditions of the Series 25 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 25 Shares outstanding after June 30, 2021, all remaining Series 25 Shares will be automatically converted into Series 24 Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 24 Shares outstanding after June 30, 2021, no Series 25 Shares will be permitted to be converted into Series 24 Shares. There are currently 1,529,133 Series 25 Shares outstanding.

They later announced (on 2021-6-23):

that 28,961 of its Cumulative Class A Preference Shares, Series 24 (the “Series 24 Shares”) (TSX: BAM.PR.R) and 658,612 of its Cumulative Class A Preference Shares, Series 25 (the “Series 25 Shares”) (TSX: BAM.PR.S) were tendered for conversion into Series 25 Shares and Series 24 Shares, respectively.

Brookfield currently has 9,278,894 Series 24 Shares and 1,529,133 Series 25 Shares outstanding. After taking into account all shares tendered for conversion, there would be less than one million Series 25 Shares outstanding on June 30, 2021, the conversion date. Accordingly, as provided in the share conditions of the Series 25 Shares, all remaining Series 25 Shares will be automatically converted into Series 24 Shares on a one-for-one basis effective June 30, 2021 (“automatic conversion”). There will be no conversion of Series 24 Shares tendered for conversion into Series 25 Shares, and holders of Series 24 Shares will retain their Series 24 Shares.

Following the automatic conversion, there will be 10,808,027 Series 24 Shares and no Series 25 Shares issued and outstanding. Holders of Series 25 Shares will receive a dividend of $0.147905 per share payable on June 30, 2021 in respect of the April 1, 2021 to June 30, 2021 floating rate period. If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2021 will be paid at an annual rate of 3.237% ($0.2023125 per share per quarter). The Series 25 Shares will be de-listed from the Toronto Stock Exchange effective as of close of trading on June 30, 2021.

BAM.PR.R was issued as a FixedReset, 5.40%+230, that commenced trading 2010-1-14 after being announced 2010-1-5. It reset to 3.014% in 2016; I recommended against conversion but there was a 14% conversion to the FloatingReset BAM.PR.S anyway.

BAM.PR.S was a FloatingReset, Bills+230, that arose via a partial conversion from the FixedReset BAM.PR.R.

Brompton Funds announced (on 2021-3-10):

) Global Dividend Growth Split Corp. (the “Company”) is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively).

The sales period for this overnight offering will end at 9:00 a.m. (ET) on Thursday, March 11, 2021. The offering is expected to close on or about March 18, 2021 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The Class A Shares will be offered at a price of $11.15 per Class A Share for a distribution rate of 10.8% on the issue price, and the Preferred Shares will be offered at a price of $10.20 per Preferred Share for a yield to maturity of 4.8%. The closing price on the TSX for each of the Class A Shares and Preferred Shares on March 9, 2021 was $11.32 and $10.44, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (“Unit”) (calculated as at March 9, 2021), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering. The offering is being led by RBC Capital Markets.

The Company invests in a diversified portfolio (the “Portfolio”) of equity securities of large capitalization global dividend growth companies selected by the Brompton Funds Limited (the “Manager”). In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least $10 billion; and (ii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.

The investment objectives for the Class A Shares are to provide holders with regular monthly cash distributions and to provide the opportunity for growth in the net asset value per Class A Share.

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.125 per Preferred Share, and to return the original issue price to holders of Preferred Shares on June 30, 2026.

The Company also announces that the distribution rate for the Preferred Shares of the Company for the 5 year term from July 1, 2021 to June 30, 2026 will remain unchanged at $0.50 per annum (5% on the original issue price of $10.00) payable quarterly. The Preferred Share distribution rate is based on current market rates for preferred shares with similar terms. In addition, the Company intends to maintain the targeted monthly Class A Share distribution rate at $0.10 per Class A Share. The Company previously announced the extension of the maturity date in respect of the Class A Shares and the Preferred Shares from June 30, 2021 to June 30, 2026. The term extension offers preferred shareholders the opportunity to enjoy preferential cash dividends until June 30, 2026.

Since inception to February 28, 2021, the Preferred Share has delivered a 5.1% per annum return.

Since inception to February 28, 2021, Class A shareholders have also received cash distributions of $3.25 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 this program by contacting their investment advisor.

In connection with the extension, shareholders who do not wish to continue their investment in the Fund, will be able to retract their Preferred Shares or Class A Shares on June 30, 2021 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 June 30, 2021. Pursuant to this option, the retraction price may be less than the market price if the share is trading at a premium to net asset value. To exercise this retraction right shareholders must provide notice to their investment dealer by their dealer’s deadline which in any event cannot be later than May 31, 2021 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.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced (on 2021-6-1):

the reset dividend rate on its … Class AAA Preference Shares, Series CC (“Series CC Shares”) (TSX: BPO.PR.C). … Series CC Shares

If declared, the fixed quarterly dividends on the Series CC Shares for the five years commencing July 1, 2021 and ending June 30, 2026 will be paid at an annual rate of 6.12% ($0.382313 per share per quarter).

Holders of Series CC Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series CC Shares, on a one-for-one basis, into Class AAA Preference Shares, Series DD (the “Series DD Shares”), effective June 30, 2021.

The quarterly floating rate dividends on the Series DD Shares have an annual rate, calculated for each quarter, of 5.18% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the July 1, 2021 to September 30, 2021 dividend period for the Series DD Shares will be 1.333370% (5.29% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.333343 per share, payable on September 30, 2021.

Holders of Series CC Shares are not required to elect to convert all or any part of their Series CC Shares into Series DD Shares.

As provided in the share conditions of the Series CC Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series CC Shares outstanding after June 30, 2021, all remaining Series CC Shares will be automatically converted into Series DD Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series DD Shares outstanding after June 30, 2021, no Series CC Shares will be permitted to be converted into Series DD Shares. There are currently 8,000,000 Series CC Shares outstanding.

The TSX has conditionally approved the listing of the Series DD Shares effective upon conversion. Listing of the Series DD Shares is subject to Brookfield fulfilling all the listing requirements of the TSX and, upon approval, the Series DD Shares will be listed on the TSX under the trading symbol “BPO.PR.D”.

They later announced (on 2021-6-21):

that after having taken into account all election notices received by the June 15, 2021 deadline for the conversion of the Class AAA Preference Shares, Series CC (the “Series CC Shares”) (TSX: BPO.PR.C) into Class AAA Preference Shares, Series DD (the “Series DD Shares”), the holders of Series CC Shares are not entitled to convert their Series CC Shares into Series DD Shares. There were 245,472 Series CC Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series DD Shares.

The Series CC Shares will pay on a quarterly basis, for the five-year period beginning on July 1, 2021, as and when declared by the board of directors of Brookfield, a fixed dividend based on an annual dividend rate of 6.12% ($0.382313 per share per quarter).

BPO.PR.C was issued as a FixedReset, 6.00%+518M600, that commenced trading 2016-4-27 after being announced 2016-4-18. The issue has been tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced (on 2021-6-1; broken link fixed 2023-2-4):

the reset dividend rate on its Class AAA Preference Shares, Series N (“Series N Shares”) (TSX: BPO.PR.N)…

Series N Shares

If declared, the fixed quarterly dividends on the Series N Shares for the five years commencing July 1, 2021 and ending June 30, 2026 will be paid at an annual rate of 4.01% ($0.250438 per share per quarter).

Holders of Series N Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2021, to convert all or part of their Series N Shares, on a one-for-one basis, into Class AAA Preference Shares, Series O (the “Series O Shares”), effective June 30, 2021.

The quarterly floating rate dividends on the Series O Shares have an annual rate, calculated for each quarter, of 3.07% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the July 1, 2021 to September 30, 2021 dividend period for the Series O Shares will be 0.801530% (3.18% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.200383 per share, payable on September 30, 2021.

Holders of Series N Shares are not required to elect to convert all or any part of their Series N Shares into Series O Shares.

As provided in the share conditions of the Series N Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series N Shares outstanding after June 30, 2021, all remaining Series N Shares will be automatically converted into Series O Shares on a one-for-one basis effective June 30, 2021; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series O Shares outstanding after June 30, 2021, no Series N Shares will be permitted to be converted into Series O Shares. There are currently 11,000,000 Series N Shares outstanding.

They later announced (on 2021-6-21):

that after having taken into account all election notices received by the June 15, 2021 deadline for the conversion of the Class AAA Preference Shares, Series N (the “Series N Shares”) (TSX: BPO.PR.N) into Class AAA Preference Shares, Series O (the “Series O Shares”), the holders of Series N Shares are not entitled to convert their Series N Shares into Series O Shares. There were 71,662 Series N Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series O Shares.

The Series N Shares will pay on a quarterly basis, for the five-year period beginning on July 1, 2021, as and when declared by the board of directors of Brookfield, a fixed dividend based on an annual dividend rate of 4.01% ($0.250438 per share per quarter).

BPO.PR.N was issued a FixedReset 6.15%+307, that commenced trading 2010-1-20 after being announced 2010-1-11. The issue attracted some unfavourable comment on issue due to the relatively long call lock-out period – which shows complete misunderstanding of the investment impact of an issuer call option, but we’ll ignore that. The issue reset to 3.782% in 2016; I recommended against conversion and there was no conversion.

UPDATE, 2023-2-4: It has come to my attention that the figure quoted for the dollar amount of quarterly dividends in the text ($0.250438) does not agree with the annual rate in the text and headline (4.01%). The rate that gives the dollar value shown in 4.007%. In the absence of any response to my initial attempt at contact, and unless and until I receive an answer to my current eMail, I’m going to assume the dollar value is correct.

UPDATE, 2023-2-13: So I had a highly entertaining exchange with the Brookfield Investor Relations representative:

I sent on Feb 4:

In your press release of 2021-6-1 ( https://bpy.brookfield.com/press-releases/bpo/brookfield-office-properties-announces-reset-dividend-rates-and-conversion ), the rate given for the Series N shares (4.01%) is not in agreement with the dollar figure provided for the quarterly dividends (0.250438 per share).

What is the correct rate and dollar amount?

She answered on Feb. 6:

Thank you for your email. I’ve looked into this and confirmed that what we stated in the press release is correct. The quarterly dollar amount of 0.250438 per share is in Canadian dollars. This per share amount was determined by multiplying the Annual Fixed Rate (4.01%), applicable to the Subsequent Fixed Rate Period, by C.$25.00 and dividing by four.

Please let me know if you have any additional questions.

I replied on Feb. 6:

It appears we have an arithmetical dispute.

I claim that:

1. 25.00 * 4.01% = 1.002500
2. 1.002500 / 4 = 0.250625
3. This is a different result from your answer of 0.250438

Can you tell me which of my claims you disagree with?

And she responded on Feb. 6:

Oh I’m sorry, I forgot to mention an important point in my previous email that the fixed rate % is rounded in the press release from 4.007% to 4.01%

Therefore, the exact calculation would be,

25.00 X 4.007% = 1.00175
1.00175 / 4 = 0.2504375

Laurentian Bank of Canada has announced (on 2021-5-12):

that it will redeem, on June 15, 2021, all of its Non-Cumulative Class A Preferred Shares, Series 15 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 15”) then outstanding. Such Preferred Shares Series 15 will be redeemed at a redemption price of $25.00 per share, together with any declared and unpaid dividends.

Separately from the redemption price, the final quarterly dividend of $0.365625 per Preferred Shares Series 15 will be paid, subject to its declaration by the board of directors of Laurentian Bank, in the usual manner on June 15, 2021 to shareholders of record on June 7, 2021 or such other record date determined by the board. After the Preferred Shares Series 15 are redeemed, holders of Preferred Shares Series 15 will cease to be entitled to distributions of dividends and will not be entitled to exercise any rights as holders of Preferred Shares Series 15 other than to receive the redemption price.

Beneficial holders who are not the registered holders of Preferred Shares Series 15 should contact the financial institution, broker or other intermediary through which they hold such shares to confirm how they will receive the redemption proceeds. Formal notices and instructions for the redemption will be forwarded to all registered shareholders.

LB.PR.J was a FixedReset, 5.85%+513, NVCC, that commenced trading 2016-3-17 after being announced 2016-3-8. It was tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

CU Inc. announced (on 2021-5-3):

that it has notified the registered shareholder of its Cumulative Redeemable Preferred Shares Series 4 (“Series 4 Preferred Shares”) of a conversion privilege and applicable dividend rates. As a result, subject to certain conditions, the holders of Series 4 Preferred Shares will have the right to choose one of the following options with regard to their shares:

To retain any or all of their Series 4 Preferred Shares and continue to receive a fixed rate quarterly dividend; or
To convert, on a one-for-one basis, any or all of their Series 4 Preferred Shares into Cumulative Redeemable Preferred Shares Series 5 (“Series 5 Preferred Shares”) of CU Inc. and receive a floating rate quarterly dividend.
Effective June 1, 2021, the annual dividend rate for the Series 4 Preferred Shares is set at 2.29% for the five-year period from and including June 1, 2021 to but excluding June 1, 2026 and the dividend rate for the Series 5 Preferred Shares is set at an annual rate of 1.46% for the three-month period commencing June 1, 2021 to but excluding September 1, 2021. The dividend rate for the Series 5 Preferred Shares will be reset each quarter. Both rates were calculated according to the terms described in the short form prospectus of CU Inc. dated November 24, 2010.

Beneficial owners of Series 4 Preferred Shares who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is 3 p.m. (Calgary time) / 5 p.m. (Toronto time) on May 17, 2021. Any notices received after this deadline will not be valid. As such, it is recommended that this be done well in advance of the deadline in order to provide the broker or other nominee with time to complete the necessary steps.

The foregoing conversions are subject to the conditions that: (i) if CU Inc. determines that there would be less than 1,000,000 Series 4 Preferred Shares outstanding on June 1, 2021, then all remaining Series 4 Preferred Shares will automatically be converted into Series 5 Preferred Shares on June 1, 2021, and (ii) alternatively, if CU Inc. determines that there would be less than 1,000,000 Series 5 Preferred Shares outstanding on June 1, 2021 after giving effect to conversion notices received, no Series 4 Preferred Shares will be converted into Series 5 Preferred Shares. If either of these scenarios occurs, CU Inc. will issue a news release to that effect on or before May 24, 2021.

Holders of the Series 4 Preferred Shares and the Series 5 Preferred Shares will have the opportunity to convert their shares again on June 1, 2026, and every five years thereafter as long as the shares remain outstanding.

For more information on the terms of, and risks associated with an investment in, the Series 4 Preferred Shares and the Series 5 Preferred Shares, please see CU Inc.’s short form prospectus dated November 24, 2010, which can be found under CU Inc.’s profile on SEDAR at www.sedar.com.

They later announced (on 2021-5-21):

that after having taken into account all election notices following the conversion deadline for the Cumulative Redeemable Preferred Shares Series 4 (“Series 4 Preferred Shares”) tendered for conversion into Cumulative Redeemable Preferred Shares Series 5 (“Series 5 Preferred Shares”), the holders of Series 4 Preferred Shares are not entitled to convert their Series 4 Preferred Shares into Series 5 Preferred Shares. There were approximately 3,100 Series 4 Preferred Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series 5 Preferred Shares.

The Series 4 Preferred Shares will continue to pay on a quarterly basis, for the five-year period beginning from and including on June 1, 2021 to but excluding June 1, 2026, as and when declared by the Board of Directors of CU Inc., a fixed dividend based on an annual dividend rate of 2.29%.

CIU.PR.C was issued as a 3.80%+136 FixedReset that commenced trading 2010-12-2 after being announced 2010-11-16. In 2016 it reset to 2.24% and there was no conversion to FloatingReset.

Further to their January, 2021, press release Pembina Pipeline Corporation announced (on 2021-5-6):

Subsequent to quarter end, on April 6, 2021, Pembina announced its intention to redeem all of the 10 million issued and outstanding Cumulative Redeemable Minimum Rate Reset Class A Preferred Shares, Series 13 (the “Series 13 Class A Preferred Shares”) on June 1, 2021 for a redemption price equal to $25.00 per Series 13 Class A Preferred Shares, less taxes required to be deducted or withheld by the Company.

The specifics were (2021-5-6):

Pembina intends to redeem all of its 10,000,000 issued and outstanding Series 13 Shares, in accordance with the terms of the Series 13 Shares, as set out in the Company’s articles, on June 1, 2021 (the “Redemption Date”) for a redemption price equal to $25.00 per Series 13 Share (the “Redemption Price”), less any tax required to be deducted or withheld by the Company. The total redemption price to Pembina will be $250 million and is expected to be paid with a portion of the net proceeds from the $600 million offering of 4.80% Fixed-to-Fixed Rate Subordinated Notes, Series 1 (the “Offering”) which closed on January 25, 2021.

As noted below, the Company’s Board of Directors has declared a dividend of $0.359375 per Series 13 Share payable on June 1, 2021, to holders of record on May 3, 2021. This will be the final quarterly dividend on the Series 13 Shares. Upon payment of the June 1, 2021 dividend, there will be no accrued and unpaid dividends on the Series 13 Shares as at the Redemption Date.

The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Series 13 Shares in accordance with the terms of the Series 13 Shares, as set out in the Company’s articles. Non-registered holders of Series 13 Shares should contact their broker or other intermediary for information regarding the redemption process for the Series 13 Shares in which they hold a beneficial interest. The Company’s transfer agent for the Series 13 Shares is Computershare Investor Services Inc. Questions regarding the redemption process may also be directed to Computershare at 1-800-564-6253 or by email to corporateactions@computershare.com.

PPL.PR.M was a FixedReset, 5.75%+496M575, that commenced trading 2016-4-27 after being announced 2016-4-18. The issue was tracked by HIMIPref™ but relegated to the Scraps index on credit concerns. The company started mulling the possibility of redeeming the issue in January, 2021, and these plans firmed up shortly afterwards.