CPX.PR.G To Be Redeemed

Capital Power Corporation has announced (on November 5):

that it intends to redeem all of its 8,000,000 issued and outstanding 6.00% Cumulative Minimum Rate Reset Preference Shares, Series 7 (Series 7 Shares) (TSX: CPX.PR.G) on December 31, 2021 (Redemption Date) at a price of $25.00 per share (Redemption Price) for an aggregate total of $200 million, less any tax required to be deducted and withheld by the Company.

As previously announced, the Company’s Board of Directors has declared a quarterly dividend of $0.375 per Series 7 Share payable on December 31, 2021 (Q4 2021 Quarterly Dividend). This will be the final quarterly dividend on the Series 7 Shares and, as the Redemption Date is also a dividend payment date, the Redemption Price will not include the Q4 2021 Quarterly Dividend. Instead, the Q4 2021 Quarterly Dividend will be paid on the Redemption Date separately to shareholders of record as of December 16, 2021.

The Company has provided notice today of the Redemption Price and the Redemption Date to the sole registered holder of the Series 7 Shares in accordance with their terms. Non-registered holders of Series 7 Shares should contact their broker or other intermediary for information regarding the redemption process for the Series 7 Shares in which they hold a beneficial interest.

CPX.PR.G is a FixedReset, 6.00%+526M600, that commenced trading 2016-10-4 after being announced 2016-9-22. It has been tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

Thanks to Assiduous Reader CC for bringing this to my attention!

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