PrefBlog

Capital Power Corporation has announced:

that after having taken into account all Election Notices following the December 16, 2015 conversion deadline, in respect of the Cumulative Rate Reset Preference Shares, Series 1 (Series 1 Shares) tendered for conversion into Cumulative Floating Rate Preference Shares, Series 2 (Series 2 Shares), the holders of Series 1 Shares were not entitled to convert their shares. There were approximately 930,800 Series 1 Shares tendered for conversion, which was less than the one million shares required for conversion into Series 2 Shares.

There are five million Series 1 Shares listed on the Toronto Stock Exchange (TSX) under the symbol CPX.PR.A. Effective December 31, 2015, the annual fixed dividend rate for the next five year period has been reset to 3.06%.

For more information on the terms and risks associated with an investment in the Series 1 Shares, please see Capital Power’s prospectus supplement dated December 1, 2010 which is available on sedar.com or on Capital Power’s website at capitalpower.com.

It will be recalled that I recommended against conversion and

CPX.PR.A will reset to 3.06% effective December 31. Holders of CPX.PR.A have the option to convert to FloatingResets, which will pay 3-month bills plus 217bp, reset quarterly.

This entry was posted on Friday, December 18th, 2015 at 11:03 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.