NA.PR.W : No Conversion To FloatingReset

National Bank of Canada has announced:

that none of its outstanding 12,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series 32 (the “Series 32 Preferred Shares”) will be converted on February 15, 2020 into Non-Cumulative Floating Rate First Preferred Shares, Series 33 (the “Series 33 Preferred Shares”).

During the conversion period, 58,495 Series 32 Preferred Shares were tendered for conversion into Series 33 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 32 Preferred Shares described in the prospectus supplement dated October 2, 2014.

As a result, no Series 33 Preferred Shares will be issued on February 15, 2020 and holders of Series 32 Preferred Shared will retain their shares.

The Series 32 Preferred Shares are currently listed on the Toronto Stock Exchange under the symbol NA.PR.W. The annual dividend rate for such shares for the five-year period commencing on February 16, 2020, and ending on February 15, 2025, will be 3.839% .

It will be recalled that NA.PR.W will reset at 3.839% effective February 16, 2020.

NA.PR.W is a FixedReset, 3.90%+225, that commenced trading 2014-10-9 after being announced 2014-9-30. The company announced the extension on 2019-12-19. NA.PR.W will reset at 3.839% effective February 16, 2020. I recommended against conversion. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

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