PrefBlog

HSBC Bank Canada has announced (2017-11-6):

its intention to redeem all of its issued and outstanding Non-Cumulative Redeemable Class 1 Preferred Shares Series C (“Series C Preferred Shares”) and Non-Cumulative Class 1 Preferred Shares Series D (“Series D Preferred Shares”) in accordance with their terms, on 31 December 2017, for a cash redemption price of $25.00 per share.

There are 7,000,000 Series C Preferred Shares and 7,000,000 Series D Preferred Shares outstanding, representing $350,000,000 of capital. The redemption will be financed out of the general corporate funds of HSBC Bank Canada.

Separately from the redemption price, the final quarterly dividend of $0.31875 and $0.3125 for each of the Series C Preferred Shares and Series D Preferred Shares will be paid in accordance with their terms in the usual manner on 31 December 2017 or the first business day thereafter to shareholders of record on 15 December 2017.

All the issued and outstanding Series C Preferred Shares and Series D Preferred Shares will be cancelled following their redemption.

Both of these issues have been around for a while – HSB.PR.C since 2005-4-19 and HSB.PR.D since 2005-11-9. Both were Straight Perpetuals and have been treated as DeemedRetractibles since OSFI brought in the NVCC rules. HSB.PR.C paid 1.275, or 5.10%; HSB.PR.D paid 1.25, or 5.00%.

This entry was posted on Monday, November 6th, 2017 at 8:00 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.