PrefBlog

Power Financial Corporation has announced:

that it does not intend to exercise its right to redeem all or part of the currently outstanding 11,200,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series P (the “Series P shares”) on January 31, 2016. As a result, subject to certain conditions, the holders of the Series P shares have the right to convert all or part of their Series P shares, on a one-for-one basis, into Non-Cumulative Floating Rate First Preferred Shares, Series Q (the “Series Q shares”) on February 1, 2016 (the “Conversion Date”) in accordance with the prospectus supplement dated June 18, 2010.

Holders of Series P shares who do not exercise their right to convert their Series P shares into Series Q shares on the Conversion Date will retain their Series P shares.

The dividend rate applicable to the Series P shares for the 5-year period from February 1, 2016 to January 31, 2021, and the dividend rate applicable to the Series Q shares for the 3-month period from February 1, 2016 to April 30, 2016, will be determined and announced by way of a news release on January 4, 2016.

Beneficial owners of Series P shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from January 4, 2016 until January 18, 2016 at 5:00 p.m. (EST).

The foregoing conversion rights are subject to the conditions that: (i) if Power Financial determines that there would remain outstanding on the Conversion Date less than 1,000,000 Series Q shares, after having taken into account all Series P shares tendered for conversion into Series Q shares, then holders of Series P shares will not be entitled to convert their shares into Series Q shares, and (ii) alternatively, if Power Financial determines that there would remain outstanding on the Conversion Date less than 1,000,000 Series P shares, after having taken into account all Series P shares tendered for conversion into Series Q shares, then all remaining Series P shares will automatically be converted into Series Q shares without the consent of the holders on a one-for-one basis on the Conversion Date.

In either case, Power Financial will give written notice to that effect to the registered holder of Series P shares no later than January 25, 2016.

No surprises here! PWF.PR.P is a FixedReset, 4.40%+160, that commenced trading 2010-6-29 after being announced 2010-6-17.

This entry was posted on Monday, December 7th, 2015 at 11:59 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.