EIT.PR.A: DBRS Withdraws Rating Due to Retraction Privilege

DBRS has announced (on 2025-1-31):

DBRS Limited (Morningstar DBRS) withdrew its credit rating on the Cumulative Redeemable Series 1 Preferred Units (the Series 1 Preferred Units) and confirmed its credit rating of Pfd-2 (high) on the Cumulative Redeemable Series 2 Preferred Units (the Series 2 Preferred Units; collectively with the Series 1 Preferred Units, the Preferred Units) issued by Canoe EIT Income Fund (the Fund).

Series 1 Preferred Units:

In March 2017, the Fund issued 5,635,000 Series 1 Preferred Units at a price of $25.00 per unit for gross proceeds of approximately $140.9 million. Under the terms of the issuance, the Series 1 Preferred Units are retractable for cash at $25.00 per unit at the option of the holder on or after March 15, 2024. Morningstar DBRS withdrew its credit rating on the Series 1 Preferred Units as the credit rating assigned reflects the credit risk up to the beginning date of the retraction option of March 15, 2024. On and after March 15, 2024, investors have been able to submit for retraction their Series 1 Preferred Units and have received their principal back and related accrued and unpaid distributions in accordance with the terms of issuance. There are still approximately 3.4 million Series 1 Preferred Units outstanding, as not all investors have exercised their retraction option.

Series 1 is EIT.PR.A. This post has been posted 2026-01-30, as I missed it last year!