PrefBlog

National Bank of Canada has announced:

that none of its outstanding 14,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series 30 (the “Series 30 Preferred Shares”) will be converted on May 15, 2019 into Non-Cumulative Floating Rate First Preferred Shares, Series 31 (the “Series 31 Preferred Shares”).

During the conversion period, 344,653 Series 30 Preferred Shares were tendered for conversion into Series 31 Preferred Shares, which is less than the minimum 1,000,000 required to give effect to the conversion, as per the terms of the Series 30 Preferred Shares described in the prospectus supplement dated January 31, 2014.

As a result, no Series 31 Preferred Shares will be issued on May 15, 2019 and holders of Series 30 Preferred Shared will retain their shares.

The Series 30 Preferred Shares are currently listed on the Toronto Stock Exchange under the symbol NA.PR.S. The annual dividend rate for such shares for the five-year period commencing on May 16, 2019, and ending on May 15, 2024, will be 4.025%.

NA.PR.S is a NVCC-compliant FixedReset, 4.10%+240, that commenced trading 2014-2-7 after being announced 2014-1-29. It will reset At 4.025% effective May 16, 2019. I recommended against conversion. It is tracked by HIMIPref™ and assigned to the FixedResets-Discount subindex.

This entry was posted on Thursday, May 2nd, 2019 at 8:29 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.