PrefBlog

Canaccord Genuity Group Inc. has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding Cumulative 5-Year Rate Reset First Preferred Shares, Series A of the Company (the “Series A Preferred Shares”) on September 30, 2016 (the “Conversion Date”). There are currently 4,540,000 Series A Preferred Shares outstanding.

As a result and subject to certain conditions set out in the short form prospectus dated June 16, 2011 relating to the issuance of the Series A Preferred Shares, the holders of the Series A Preferred Shares have the right, at their option, to convert all or any of their Series A Preferred Shares, on a one-for-one basis, into Cumulative Floating Rate First Preferred Shares, Series B of the Company (the “Series B Preferred Shares”) on the Conversion Date (the “Conversion Privilege”). A formal notice of the Conversion Privilege will be sent to the registered holder of the Series A Preferred Shares.
Holders who do not exercise their right to convert their Series A Preferred Shares into Series B Preferred Shares will continue to hold their Series A Preferred Shares and will have the opportunity to convert their shares again on September 30, 2021, and every five years thereafter as long as the shares remain outstanding.

The foregoing Conversion Privilege is subject to the following conditions: (i) if the Company determines that there would be less than 1,000,000 Series B Preferred Shares outstanding on the Conversion Date, then holders of Series A Preferred Shares will not be entitled to convert their shares into Series B Preferred Shares; and (ii) alternatively, if the Company determines that there would remain outstanding less than 1,000,000 Series A Preferred Shares on the Conversion Date, then all remaining Series A Preferred Shares will automatically be converted into Series B Preferred Shares on a one-for-one basis on the Conversion Date. In either case, the Company will give written notice to that effect to any registered holders affected by the preceding conditions of the Series A Preferred Shares no later than September 23, 2016.

The dividend rate applicable to the Series A Preferred Shares for the five-year period commencing on October 1, 2016 and ending on and including September 30, 2021, and the dividend rate applicable to the Series B Preferred Shares for the three-month period commencing on October 1, 2016 and ending on and including December 31, 2016, will be determined and announced by way of a press release on September 1, 2016.

Beneficial owners of Series A Preferred Shares who wish to exercise their Conversion Privilege 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 August 31, 2016 until 5:00 p.m. (Toronto time) on September 15, 2016.

No surprise here, since CF.PR.A is a 5.50%+321 FixedReset that commenced trading 2016-6-23 after being announced 2011-6-6. CF.PR.A is tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

This entry was posted on Wednesday, August 17th, 2016 at 10:22 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.