PrefBlog

National Bank of Canada has announced:

the dividend rates applicable to the Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series 38 Non-Viability Contingent Capital (NVCC) (the “Series 38 Shares”) and the Non-Cumulative Floating Rate First Preferred Shares, Series 39 (NVCC) (the “Series 39 Shares”).

Holders of Series 38 Shares, should any remain outstanding after November 15, 2022, will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the five-year period commencing on November 16, 2022, and ending on November 15, 2027, will be 7.027% being equal to the sum of the five-year Government of Canada Bond yield (3.597%) plus 3.43%, as determined in accordance with the terms of the Series 38 Shares.

Holders of Series 39 Shares, should any be issued on November 15, 2022, will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on November 16, 2022, and ending on February 15, 2023, will be 7.256%, being equal to the sum of the 90-day Government of Canada Treasury Bill yield (3.826%) plus 3.43%, calculated on the basis of actual number of days elapsed in such quarterly floating rate period divided by 365, as determined in accordance with the terms of the Series 39 Shares.

Holders of the Series 38 Shares have, subject to certain conditions, the right to convert all or part of their Series 38 Shares on a one-for-one basis into Series 39 Shares on November 15, 2022.

Beneficial owners of Series 38 shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is October 31, 2022, at 5:00 p.m. (EDT).

NA.PR.C is a FixedReset, 4.45%+343, NVCC-compliant, that commenced trading 2017-6-13 after being announced 2017-6-1. Notice of extension was given in 2022. It is tracked by HIMIPref™ and has been assigned to the FixedResets (Discount) subindex.

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

This entry was posted on Monday, October 17th, 2022 at 10:04 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.