PrefBlog

Canaccord Genuity Group Inc. has announced (bolding from original):

y the applicable dividend rates for its Cumulative 5-Year Rate Reset First Preferred Shares, Series C (the “Series C Preferred Shares”) and its Cumulative Floating Rate First Preferred Shares, Series D (the “Series D Preferred Shares”), further to its press release dated May 24, 2022 announcing that it does not intend to exercise its right to redeem all or any part of the currently outstanding Series C Preferred Shares and, as a result of which, subject to certain conditions, the holders of the Series C Preferred Shares have the right to convert all or any part of their Series C Preferred Shares into Series D Preferred Shares on a one-for-one basis.

With respect to any Series C Preferred Shares that remain outstanding after June 30, 2022, holders thereof will be entitled to receive quarterly fixed, cumulative, preferential cash dividends, if, as and when declared by the Board of Directors of the Company, subject to the provisions of the Business Corporations Act (British Columbia). 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.

With respect to any Series D Preferred Shares that may be issued on June 30, 2022, holders thereof will be entitled to receive quarterly floating rate, cumulative, preferential cash dividends, if, as and when declared by the Board of Directors of the Company, subject to the provisions of the Business Corporations Act(British Columbia). The dividend rate for the three-month period commencing on July 1, 2022 and ending on and including September 30, 2022 will be 5.507% per annum, being equal to the sum of the three-month Government of Canada Treasury Bill yield determined as of today, plus 4.03% (calculated on the basis of the actual number of days elapsed during such quarterly period divided by 365), in accordance with the terms of the Series D Preferred Shares. The quarterly floating dividend rate will be reset every quarter.

Beneficial owners of Series C Preferred Shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee to ensure their instructions are followed for exercising such right on or prior to the deadline for exercise, which is 5:00 p.m. (Eastern time) 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 extension in 2022 was previously announced. The issue has been relegated to the Scraps subindex since inception on credit concerns.

Thanks to Assiduous Reader Yomgui for ensuring I was aware of this!

This entry was posted on Wednesday, June 1st, 2022 at 9:07 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.