PrefBlog

Fortis Inc. has announced (not as a press release, since they are peculiar, but as a link in a footnote to their table of preference shares:

Fortis Inc. (the “Corporation”) hereby provides notice to the holders of its Cumulative Redeemable Fixed Rate Reset First Preference Shares, Series M of the Corporation (the “Series M Shares”) of the following dividend rates, in each case payable if, as and when declared by the Board of Directors of the Corporation:
i. $0.34331250 per Series M Share, being the fixed dividend rate payable quarterly on the first day of March, June, September and December of each year during the five-year period from and including December 1, 2024 to but excluding December 1, 2029; and
ii. $0.37744521 per share on the Cumulative Redeemable Floating Rate First Preference Shares, Series N of the Corporation (the “Series N Shares”), being the floating dividend rate applicable to the Series N Shares for the 3-month period from and including December 1, 2024 and ending on and including February 28, 2025,

in each case determined in accordance with the corresponding rights, privileges, conditions and restrictions attached to the Series M Shares and Series N Shares, respectively, as a class, as set out in the short form prospectus of the Corporation dated September 11, 2014 relating to the issuance of the Series M Shares.

Beneficial owners of Series M Shares wishing to convert to Series N Shares should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from November 1, 2024, until 5:00 p.m. (EST) on November 18, 2024.

Inquiries should be directed to Ms. Karen Gosse, Vice President, Finance, Fortis at 709.737.2865.

FTS.PR.M was issued as a FixedReset, 4.10%+248, that commenced trading 2014-9-19 after being announced and supersized 2014-9-3. It reset to 3.913% effective 2019-12-1. Notice of extension was provided wierdly in mid-October, 2024. FTS was upgraded to Pfd-2(low) (from Pfd-3(high)) by DBRS on 2021-5-4. The issue is tracked by HIMIPref™ and is assigned to the FixedResets (Discount) subindex.

Update, 2024-11-27: Fortis has announced (again, via a footnote to their table of preference shares):

that only 20,950 Cumulative Redeemable Fixed Rate Reset First Preference Shares, Series M of the Corporation (the “Series M Shares”) were tendered for conversion into Cumulative Redeemable Floating Rate First Preference Shares, Series N of the Corporation (the “Series N Shares”) on or prior to the November 18, 2024 conversion deadline.

Pursuant to the terms of the Series M Shares, as described in the short form prospectus of the Corporation dated September 11, 2014 relating to the issuance of the Series M Shares, holders of Series M Shares are not entitled to convert their Series M Shares into Series N Shares unless at least 1,000,000 Series M Shares are tendered for conversion during the conversion period. As a result of the failure of holders to tender at least 1,000,000 Series M Shares for conversion at this time, no Series M Shares will be converted into Series N Shares on December 1, 2024.

Holders of Series M Shares who exercised their right to convert their Series M Shares into Series N Shares will continue to hold Series M Shares on and after December 1, 2024 and any Series M Shares tendered for conversion will be returned to the holders thereof. As previously announced by the Corporation, the fixed dividend rate on the Series M Shares will be $0.34331250 per Series M Share, payable quarterly on the first day of March, June, September and December of each year during the five-year period from and including December 1, 2024 to but excluding December 1, 2029.

Inquiries should be directed to Ms. Karen Gosse, Vice President, Finance, Fortis at 709.737.2865.

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

This entry was posted on Friday, November 1st, 2024 at 9:20 pm and is filed under Better Communication, Please!, 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.