17 Responses to “February 28, 2024”

1. Peculiar_Investor says:

   February 29, 2024 at 12:20 pm

   James, time to flip your desktop calendar to February 😁

2. jiHymas says:

   February 29, 2024 at 1:28 pm

   James, time to flip your desktop calendar to February

   Eeep! Fixed it! It gives you an idea of how my day is going, doesn’t it?

3. Peculiar_Investor says:

   February 29, 2024 at 3:04 pm

   I kind of guessed that. BTW, heads up it is a leap-year this year so not yet March!

4. Joel A says:

   February 29, 2024 at 5:15 pm

   2-29-24: adding a leap year comment:
   – BIK.PR.A should reset or be called today at 7.59 on par. Min rate=5.82, even odds on a call since BN Fin just floated a large bond offering.
   – BN.PF.D should reset or be called today at 6.62 on par.
   Can not find any news as Brookfield will wait for you to bother THEM about such details.

5. Joel A says:

   February 29, 2024 at 5:16 pm

   above ticket should read BN.PF.B

6. niagara says:

   February 29, 2024 at 8:08 pm

   I believe that Brookfield resets the rate (or announces redemption, which is quite possible for BIK) tmr, March 1, which is 30 in advance of the redemption date. Also resetting tmr are AQN.PR.D (they already announced that they are not redeeming) and PPL.PR.Q.

   Why some issuers like Brookfield and Pembina cannot announce their redemption decision before the reset date is beyond me. Surely they don’t just roll out of bed and decide over morning coffee before the 10am reset (then again, maybe that is just what they do).

7. niagara says:

   March 1, 2024 at 12:13 pm

   PPl.PR.Q has been reset:
   “The annual dividend rate for the Series 17 Shares for the five-year period from and including March 31, 2024, to, but excluding, March 31, 2029, will be 6.605 percent, being equal to the five-year Government of Canada bond yield of 3.595 percent determined as of today plus 3.01 percent, in accordance with the terms of the Series 17 Shares.”

   https://www.pembina.com/media-centre/news/details/31762018-ea4f-418a-885a-2670aee201c3

   This gives us a 7.85% yield based on the last price. Not too shabby.

8. niagara says:

   March 1, 2024 at 12:22 pm

   It will be interesting to see what 5yr GOC rate that Brookfield, Algonquin, and Aimia use. The 5yr rate dropped at 10am fairly quickly no doubt due to the weaker than expected ISM Manufacturing PMI in the used which was released at 10am. 5yr GOC was down to 3.545% within a moment of 10am, 5bps below the rate that Pembina used. Algonquin may well use the current rate, which is about 3.52%!

9. niagara says:

   March 1, 2024 at 4:14 pm

   Aimia used 3.573% for the reset rate:
   https://www.aimia.com/wp-content/uploads/2024/03/03-01-2024-Aimia-announces-dividend-rate.pdf

10. jiHymas says:

    March 1, 2024 at 8:56 pm

    I believe that Brookfield resets the rate (or announces redemption, which is quite possible for BIK) tmr, March 1, which is 30 in advance of the redemption date.

    The first day of the next five-year period for BN.PF.B is April 1 (see the 2019 reset release), which is March 32, which means thirty days prior is March 2, which is Saturday, which means the reset will be done Monday.

11. AIM.PR.C To Reset To 7.773% « PrefBlog says:

    March 1, 2024 at 9:11 pm

    […] Thanks to Assiduous Reader niagara for bringing this to my attention! […]

12. niagara says:

    March 2, 2024 at 11:01 am

    Thank you, James.

    I also note that, under “Redemption” in the docs for BN.PF.B and BIK.PR.A, there is this:
    ” Notice of any redemption must
    be given by the company at least 30 days and not more than 60 days prior to the date fixed for redemption.”

    https://bn.brookfield.com/sites/brookfield-bn/files/bn/stock-distributions/preferred-shares/provisions-classaprefshares-series-34.pdf

    https://bn.brookfield.com/sites/brookfield-bn/files/bn/stock-distributions/preferred-shares/provisions-classaprefshares-series-34.pdf

    Since I see no news release by either BN or BIP, I assume that means neither of these issues is going to be redeemed (since today is March 2 and the redemption date is ” on March 31st every five years thereafter”. We have passed the 30 day limit.

    I was not expecting BN to redeem BN.PF.B, but I thought that there was a reasonable chance that BIP would redeem the BIK issue, given the high reset of 396bps.

13. jiHymas says:

    March 2, 2024 at 11:23 am

    since today is March 2 and the redemption date is ” on March 31st every five years thereafter”. We have passed the 30 day limit.

    Maybe. There might be language in the prospectus stating that if the precisely calculated day of doing something is not a business day then the following business day is just as good.

14. niagara says:

    March 4, 2024 at 4:50 pm

    Brookfield resets BN.PF.B to 6.145% (implying a 5yr GOC of 3.515%):

    https://bn.brookfield.com/press-releases/brookfield-announces-reset-dividend-rate-its-series-34-preference-shares

15. Joel A says:

    March 4, 2024 at 5:45 pm

    A press release related to the rate reset of the BIPIC Series 1 shares (BIK.PR.A) is forthcoming.
    Regards,
    BIP​​​ Enquiries
    Shared Mailbox Account
    Brookfield Infrastructure Partners LP
    181 Bay Street Suite 100 , Toronto , Ontario , M5J 2T3

16. niagara says:

    March 4, 2024 at 6:58 pm

    here it is:
    https://bip.brookfield.com/press-releases/bip/brookfield-infrastructure-announces-reset-dividend-rate-its-series-1-senior
    reset at 7.475%
    Thought that they might redeem it.

17. niagara says:

    March 4, 2024 at 7:57 pm

    AQN.PR.D rate is 6.853%. Implied 5yr GOC rate is 3.573% (this was from Friday’s rate setting). Not yet on their website.

    OAKVILLE, ON, March 4, 2024 /CNW/ – Further to the news release of Algonquin Power & Utilities Corp. (“AQN” or the “Company”) (TSX: AQN) (NYSE: AQN) dated February 20, 2024, the Company announced today the applicable dividend rates, determined as of March 1, 2024, for its Cumulative Rate Reset Preferred Shares, Series D (the “Series D Preferred Shares”) and Cumulative Floating Rate Preferred Shares, Series E (the “Series E Preferred Shares”).

    With respect to any Series D Preferred Shares that remain outstanding after April 1, 2024, 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 (the “Board”). The dividend rate for the 5-year period from and including March 31, 2024 to but excluding March 31, 2029 will be 6.853%, being equal to the 5-year Government of Canada bond yield determined as of March 1, 2024 plus 3.28%, in accordance with the terms of the Series D Preferred Shares.

    With respect to any Series E Preferred Shares that may be issued on April 1, 2024, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, if, as and when declared by the Board. The dividend rate for the 3-month floating rate period from and including March 31, 2024 to but excluding June 30, 2024 will be 8.261%, being equal to the 3-month Government of Canada Treasury Bill yield determined as of March 1, 2024 plus 3.28%, 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 E Preferred Shares.