CF.PR.C To Be Extended

Canaccord Genuity Group Inc. has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding Cumulative 5-Year Rate Reset First Preferred Shares, Series C of the Company (the “Series C Preferred Shares”) on June 30, 2022 (the “Conversion Date”). There are currently 4,000,000 Series C Preferred Shares outstanding.

As a result, and subject to certain conditions set out in the short form prospectus dated April 2, 2012, relating to the issuance of the Series C Preferred Shares, the holders of the Series C Preferred Shares have the right, at their option, to convert all or any of their Series C Preferred Shares, on a one-for-one basis, into Cumulative Floating Rate First Preferred Shares, Series D of the Company (the “Series D Preferred Shares”) on the Conversion Date (the “Conversion Privilege”). A formal notice of the Conversion Privilege will be sent to the registered holder of the Series C Preferred Shares.

Holders who do not exercise their right to convert their Series C Preferred Shares into Series D Preferred Shares will continue to hold their Series C Preferred Shares and will have the opportunity to convert their shares again on June 30, 2027, and every five years thereafter as long as the shares remain outstanding.

The foregoing Conversion Privilege is subject to the following conditions: (i) if the Company determines that there would be less than 1,000,000Series D Preferred Shares outstanding on the Conversion Date, then holders of Series C Preferred Shares will not be entitled to convert their shares into Series D Preferred Shares; and (ii) alternatively, if the Company determines that there would remain outstanding less than 1,000,000 Series C Preferred Shares on the Conversion Date, then all remaining Series C Preferred Shares will automatically be converted into Series D Preferred Shares on a one-for-one basis on the Conversion Date. In either case, the Company will give written notice to that effect to any registered holders affected by the preceding conditions of the Series C Preferred Shares no later than June 23, 2022.

The dividend rate applicable to the Series C Preferred Shares for the five-year period commencing on July 1, 2022, and ending on and including June 30, 2027, and the dividend rate applicable to the Series D Preferred Shares for the three-month period commencing on July 1, 2022, and ending on and including September 30, 2022 will be determined and announced by way of a press release on June 1, 2022.

Beneficial owners of Series C Preferred Shares who wish to exercise their Conversion Privilege should communicate as soon as possible with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from May 31, 2022 until 5:00 p.m. ET on June 15, 2022.

CF.PR.C was issued as a FixedReset, 5.75%+403, that commenced trading 2012-4-10 after being announced 2012-3-22. In 2017, it reset at 4.993%. I recommended against conversion and there was no conversion.The has been relegated to the Scraps subindex since inception on credit concerns.

Thanks to Assiduous Reader Philip169382 for bringing this to my attention!

6 Responses to “CF.PR.C To Be Extended”

  1. moooooo says:

    Make sense to me to extend it knowing that CF.PR.A is like 20% cheaper to buy than CF.PR.C at current market price
    – CF.PR.A +321 at 15.5$ (reset yield +-9.68%)
    – CF.PR.C +403 at 24.1$ (reset yield +-7.12%)
    Div % of CF.PR.A will only be a bit lower for the next 4-5 years.

    Btw great blog James & long life pref shares!

  2. Yomgui says:

    For those interested:
    “The dividend rate for the five-year period commencing on July 1, 2022 and ending on and including June 30, 2027 will be 6.837% per annum, being equal to the sum of the five-year Government of Canada bond yield determined as of today, plus 4.03%, in accordance with the terms of the Series C Preferred Shares.”

  3. […] at 4.993%. I recommended against conversion and there was no conversion. The extension in 2022 was previously announced. The issue has been relegated to the Scraps subindex since inception on credit […]

  4. […] Thanks to Assiduous Reader skeptical for ensuring I was aware of this! […]

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