PrefBlog

Quadravest has announced:

North American Financial 15 Split Corp. (the “Company”) is pleased to announce that the minimum annual dividend rate for the Preferred Shares will increase to 7.00% from 5.5% for the new five year term effective December 1, 2024. The payment rate that may be reset annually, subject to the five year minimum, will be set at 8.75% (previously 9.50%) per annum effective December 1, 2024 based on the $10.00 repayment value. The Preferred shareholders have received a total of $11.38 per share in distributions since inception. The dividend policy for the Class A Shares will remain at the current targeted rate of $0.11335 per month, or $1.36 per annum.

As previously announced on March 12, 2024 the Company will extend the termination date of the Company a further five year period from December 1, 2024 to December 1, 2029. In relation to the term extension, the Company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 29, 2024 net asset value per unit. Alternatively, shareholders may sell their shares for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to
hold their shares.

The Company invests in a high quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers as follows: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, National Bank of Canada, Manulife Financial Corporation, Sun Life Financial, Great-West Lifeco, CI Financial Corp, Bank of America, Citigroup Inc., Goldman Sachs Group, JP Morgan Chase & Co. and Wells Fargo & Co.

Notice of extension was provided last March.

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

Quadravest has announced:

Dividend 15 Split Corp. (the “Company”) is pleased to announce an increase in the Preferred Share dividend rate to 7.00% from 5.50% on the $10.00 repayment value for the new five-year term effective December 1, 2024. The Preferred Share monthly dividends will be $0.05833 per share or $0.70 per annum and the new distribution rate represents an increase of $0.15 per annum from the previous rate. Preferred shareholders have received a total of $10.86 per share in distributions since inception. The dividend policy for the Class A Shares will remain at the current targeted rate of $0.10 per month, or $1.20 per annum.

As previously announced on March 12, 2024 the Company will extend the termination date a further five year period from December 1, 2024 to December 1, 2029. In relation to the term extension and the Preferred Share rate increase, the Company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 29, 2024 net asset value per unit. Alternatively, shareholders may sell their shares for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.

The Company invests in a high quality portfolio of leading Canadian dividend-yielding stocks as follows: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, TorontoDominion Bank, National Bank of Canada, CI Financial Corp., BCE Inc., Manulife Financial, Enbridge, Sun Life Financial, TELUS Corporation, Thomson Reuters Corporation, TransAlta Corporation, TC Energy Corporation.

Notice of extension of this issue was provided last May.

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

Enbridge Inc. has announced (long ago, I am shamed to admit: 2023-5-17):

that 1,827,695 of its outstanding Cumulative Redeemable Preference Shares, Series F (Series F Shares) were tendered for conversion, on a one-for-one basis, into Cumulative Redeemable Preference Shares, Series G of Enbridge (Series G Shares), effective on June 1, 2023. As a result, on June 1, 2023, Enbridge will have 18,172,305 Series F Shares and 1,827,695 Series G Shares issued and outstanding.

The Series F Shares will continue to be listed on the Toronto Stock Exchange (TSX) under the symbol ENB.PR.F. The TSX has conditionally approved the listing of the Series G Shares effective upon conversion. The Series G Shares will begin trading on the TSX on June 1, 2023, subject to the fulfillment of all the listing requirements of the TSX.

ENB.PR.F was issued as a 4.00%+251 FixedReset that commenced trading 2012-1-18 after being announced 2012-1-9. It reset to 4.689% in 2018. I recommended against conversion; there was no conversion. It reset to 5.538% in 2023. The issue is tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns (as of 2023-5-17; upgraded by DBRS to Pfd-2(low) in June, 2024).

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

Partners Value Split Corp. has announced:

its intention to redeem all 4,023,763 of its outstanding Class AA Preferred Shares, Series 8 (“Preferred Shares, Series 8”) for cash on September 30, 2024 (the “Redemption Date”) in accordance with the terms of the Preferred Shares, Series 8.

The redemption price per Preferred Share, Series 8 will be equal to C$25.00 per share plus accrued and unpaid dividends of C$0.10 per share to September 30, 2024 representing total redemption price of C$25.10 per share (the “Redemption Price”).

Notice will be delivered to holders of the Preferred Shares, Series 8 in accordance with the terms of the Preferred Shares, Series 8.

From and after the Redemption Date, the Preferred Shares, Series 8 will cease to be entitled to dividends or any other participation in any distribution of the assets of the Company and the holders thereof shall not be entitled to exercise any of their rights as shareholders in respect thereof except to receive the Redemption Price (less any tax required to be deducted and withheld by the Company). After the redemption of the Preferred Shares, Series 8, the Company will consolidate the existing capital shares held by Partners Value Investments Inc. so that there are an equal number of preferred shares and capital shares outstanding.

PVS.PR.F was issued as a SplitShare, 4.80%, maturing 2024-9-30, which commenced trading 2017-9-18 after being announced 2017-09-07. There was a partial redemption effective 2024-5-31. The issue is tracked by HIMIPref™ and has been assigned to the SplitShare subindex.

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

A little bit of fussy news here, in connection with the post relaying the news that SBN.PR.A & TXT.PR.A Merge Into PGIC, PGIC.PR.A.

I sent the following eMail to Mulvihill:

Has a September dividend been declared for SBN.PR.A or has this distribution been cancelled due to the merger?

If a dividend has been declared, what is the amount, record- and pay-date?

With commendable promptness and clarity they have replied:

The S Split Corp. September preferred share distribution was not declared.

I’ll add that holders of the Premium Global Income Split Corp as of the record date September 16, 2024 will be entitled to the monthly distribution payable September 27, 2024
The announcement is available on our fund page and a link is provided here:

https://mulvihill.com/pr/PGIC/PGIC_20240903_194949.pdf

September 13, 2024 we announced the results of the merger ration from S Split Corp int Premium Global Income Split Corp.

A link to the release is included for your review.

https://mulvihill.com/pr/SBN/SBN_20240913_100318.pdf

Holders of Class A Shares of SBN will receive 0.373815 Class A Shares of Premium Global for each Class A Share held.

Holders of Preferred Shares of SBN will receive 0.743873 Preferred Shares and 0.330689 Class A Shares for each Preferred Share held.

Mulvihill Capital Management Inc. has announced (2024-9-4):

Premium Income Corporation (the “Fund”) is pleased to announce that the term of the Fund will be extended automatically for an additional seven year period beyond November 1, 2024 to November 1, 2031 as provided for in its articles of incorporation. In addition, in connection with the new term, holders of Class A shares will continue to receive ongoing leveraged exposure to a high-quality portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank, as well as attractive monthly distributions. Holders of the preferred shares are expected to continue to benefit from fixed cumulative preferential monthly distributions in the amount of $0.10625 ($1.275 per annum) per preferred share representing a yield of 8.5% on the original issue price of $15.00.

In connection with the extension of the term, holders of class A shares and preferred shares have a special retraction right (“Special Retraction Right”) to permit holders of such securities to retract such shares on November 1, 2024 on the terms on which such shares would have been redeemed had the term of the Fund not been extended. In order to exercise the Special Retraction Right, shares must be surrendered for retraction on or prior to 5:00 p.m. (Toronto time) on October 17, 2024. Depending on if more class A shares or preferred shares are retracted under the Special Retraction Right, the Fund will have to redeem preferred shares or consolidate the class A shares on a basis to ensure an equal number of class A shares and preferred shares remain outstanding.

For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172, email at info@mulvihill.com or visit www.mulvihill.com.

Amusingly, this extension notice was published 2024-9-4, following the prior announcement of a dividend rate boost to 8.50%.

Thanks to the miracle of Canadian banking (tax the poor with excessive fees so the rich can have a good investment and politicians will have future employers) PIC / PIC.PR.A has managed to keep above the $15.00 par value of the preferreds, despite the massive distribution rate of over $0.80 per year on the Capital Units. And I end up with egg on my face yet again for not recommending PIC.PR.A despite its generous yield.

Well, I’m a glutton for punishment. I’m still not going to recommend it due to the lack of a NAV test on Capital Distributions. Some day, that’s going to catch up with the corporation … particularly with an 8.5% dividend rate on the preferreds – see here and here for a discussion of what cash drag can do to split share credit quality.