POW.PR.F To Be Redeemed

Power Corporation of Canada has announced:

that it intends to redeem all 86,100 of its outstanding Cumulative Redeemable First Preferred Shares, 1986 Series (the “1986 Series Shares”) on January 15, 2022.

In accordance with the terms of the 1986 Series Shares, the redemption price will be $50.00 per 1986 Series Share together with all accrued and unpaid dividends, net of any tax required to be withheld by the Corporation. On November 10, 2021, the board of directors of the Corporation declared a quarterly dividend on the 1986 Series Shares, payable January 15, 2022 to shareholders of record December 24, 2021, of $0.2144 [1]. A notice of the redemption of the 1986 Series Shares will be provided in accordance with the rights, privileges and conditions attached to the 1986 Series Shares.

POW.PR.F is a Floater, paying 70% of Canada Prime. It has been notable mainly for its unusual $50 par value, for its sinking fund and for the lackadaisical efforts to give effect to the sinking fund. It has been tracked by HIMIPref™ since the beginning of the database 1993-11-30 and has been assigned to the Scraps index for a long time due to volume concerns – at $340 daily, it has the lowest Average Daily Trading Value of any current issue. But it was in the BMO-CM “50” index as late as 1996!

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