Power Financial Corporation has announced:
the applicable dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series T (the “Series T shares”) and Non-Cumulative Floating Rate First Preferred Shares, Series U (the “Series U shares”).
With respect to any Series T shares that remain outstanding after January 31, 2024, holders thereof will be entitled to receive quarterly fixed non-cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Power Financial. The dividend rate for the 5-year period from and including January 31, 2024 to but excluding January 31, 2029 will be 5.595%, being equal to the 5-year Government of Canada bond yield determined as of today plus 2.37%, in accordance with the terms of the Series T shares.
With respect to any Series U shares that may be issued on January 31, 2024, holders thereof will be entitled to receive quarterly floating rate non-cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Power Financial. The dividend rate for the 3-month floating rate period from and including January 31, 2024 to but excluding April 30, 2024 will be 7.407%, being equal to the 3-month Government of Canada Treasury Bill yield determined as of today plus 2.37%, calculated on the basis of the actual number of days in such quarterly period divided by 365, in accordance with the terms of the Series U shares.
Beneficial owners of Series T shares who wish to exercise their conversion right should communicate with their broker or other nominee to ensure their instructions are followed so that the registered holder of the Series T shares can meet the deadline to exercise such conversion right, which is 5:00 p.m. (Eastern Time) on January 16, 2024.
PWF.PR.T was issued as a FixedReset, 4.20%+237, that commenced trading 2013-12-11 after being announced 2013-12-2. PWF.PR.T reset at 4.215% effective 2019-1-31. I recommended against conversion and there was no conversion. Notice of extension was provided in December, 2023. The issue is tracked by HIMIPref™ and is assigned to the FixedReset Discount subindex.
Thanks to Assiduous Reader NK for bringing this to my attention!
Damn, no conversion. https://www.powerfinancial.com/en/news/press-releases/2024/power-financial-announces-results-of-conversion-rights-of-non-cumulative-5-year-rate-reset-first-preferred-shares-series-t-122626/
What are holders thinking?
“What are holders thinking?”
Perhaps they are thinking that 3mth T-bill rates are headed significantly lower? and/or liquidity would truly suck on the floating rate issue?
or maybe they just could not be bothered to call their broker to request conversion to the floating rate issue.