PrefBlog

Capital Power Corporation has announced:

that after having taken into account all Election Notices following the December 17, 2018 conversion deadline, in respect of the Cumulative Rate Reset Preference Shares, Series 3 (Series 3 Shares) tendered for conversion into Cumulative Floating Rate Preference Shares, Series 4 (Series 4 Shares), the holders of Series 3 Shares were not entitled to convert their shares. There were approximately 47,270 Series 3 Shares tendered for conversion, which was less than the required one million shares required for conversion into Series 4 Shares.

There are six million Series 3 Shares listed on the Toronto Stock Exchange (TSX) under the symbol CPX.PR.C. Effective December 31, 2018, the Annual Fixed Dividend Rate for the next five-year period has been reset to 5.45300%.

For more information on the terms of, and risks associated with an investment in the Series 3 Shares, please see Capital Power’s prospectus supplement dated December 10, 2012 which is available on sedar.com or on Capital Power’s website at capitalpower.com.

It will be recalled that CPX.PR.C will reset at 5.453% effective December 31, 2018.

CPX.PR.C is a FixedReset, 4.60%+323, that commenced trading 2012-12-18 after being announced 2012-12-6. It is tracked by HIMIPref™ but relegated to the Scraps – FixedReset Discount index on credit concerns.

The issue will reset at 5.453% effective December 31, 2018. I recommended against conversion.

This entry was posted on Tuesday, December 18th, 2018 at 10:45 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.