Element Fleet Management has announced:
that none of its outstanding Cumulative 5-Year Rate Reset Preferred Shares, Series C (the “Series C shares”) will be converted into Cumulative Floating Rate Preferred Shares, Series D (the “Series D shares”) on June 30, 2019.
During the conversion notice period, which commenced on May 31, 2019 and ended at 5:00 p.m. (Toronto time) on June 17, 2019, 145,926 Series C shares were tendered for conversion into Series D shares. In accordance with Section 6.03(a)(iii) of the rights, privileges, restrictions and conditions attaching to the Series C shares, as provided in the Corporation’s restated articles of incorporation dated October 4, 2016, since there would be outstanding on June 30, 2019 less than 500,000 Series D shares, after having taken into account all Series C shares tendered for conversion into Series D shares, holders of Series C shares who elected to tender their shares for conversion will not have their Series C shares converted into Series D shares on June 30, 2019.
As a result, no Series D shares will be issued in connection with the current conversion privilege.
EFN.PR.C was announced 2014-2-26 as a FixedReset, 6.50%+481, but was not added to HIMIPref™ at that time as the company did not have a credit rating. The company received an initial rating from DBRS on 2015-9-24 and HIMIPref™ commenced tracking its four issues then outstanding shortly thereafter. The extension of the issue was announced 2019-5-22 and it was later announced that EFN.PR.C will reset At 6.210% effective June 30, 2019. I recommended against conversion. The issue continues to be tracked by HIMIPref™ but is relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.
[…] would reset at 6.210% effective June 30, 2019. I recommended against conversion and there was no conversion. The issue has been tracked by HIMIPref™ but is relegated to the Scraps – FixedReset […]