{"id":28493,"date":"2015-04-01T23:19:48","date_gmt":"2015-04-02T04:19:48","guid":{"rendered":"http:\/\/prefblog.com\/?p=28493"},"modified":"2015-04-01T23:19:48","modified_gmt":"2015-04-02T04:19:48","slug":"brf-pr-a-to-reset-at-3-355","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=28493","title":{"rendered":"BRF.PR.A To Reset At 3.355%"},"content":{"rendered":"

Brookfield Renewable Energy Partners L.P. has announced<\/a>:<\/p>\n

that it has determined the fixed dividend rate on Brookfield Renewable Power Preferred Equity Inc.\u2019s Class A Preference Shares, Series 1 (\u201cSeries 1 Shares\u201d) (TSX: BRF.PR.A) for the five years commencing May 1, 2015 and ending April 30, 2020. If declared, the fixed quarterly dividends on the Series 1 Shares during that period will be paid at an annual rate of 3.355% ($0.2096875 per share per quarter).<\/p>\n

Holders of Series 1 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on April 15, 2015, to convert all or part of their Series 1 Shares, on a one-for-one basis, into Class A Preference Shares, Series 2 (the \u201cSeries 2 Shares\u201d), effective April 30, 2015.<\/p>\n

The quarterly floating rate dividends on the Series 2 Shares will be paid at an annual rate, calculated for each quarter, of 2.62% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the May 1, 2015 to July 31, 2015 dividend period for the Series 2 Shares will be 0.793468% (3.148% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.198367 per share, payable on July 31, 2015.<\/p>\n

Holders of Series 1 Shares are not required to elect to convert all or any part of their Series 1 Shares into Series 2 Shares.<\/p>\n

As provided in the share conditions of the Series 1 Shares, (i) if Brookfield Renewable determines that there would be fewer than 1,000,000 Series 1 Shares outstanding after April 30, 2015, all remaining Series 1 Shares will be automatically converted into Series 2 Shares on a one-for-one basis effective April 30, 2015; and (ii) if Brookfield Renewable determines that there would be fewer than 1,000,000 Series 2 Shares outstanding after April 30, 2015, no Series 1 Shares will be permitted to be converted into Series 2 Shares. There are currently 10,000,000 Series 1 Shares outstanding.<\/p>\n

The Toronto Stock Exchange (\u201cTSX\u201d) has conditionally approved the listing of the Series 2 Shares effective upon conversion. Listing of the Series 2 Shares is subject to Brookfield Renewable fulfilling all the listing requirements of the TSX and, upon approval, the Series 2 Shares will be listed on the TSX under the trading symbol \u201cBRF.PR.B\u201d.<\/p><\/blockquote>\n

BRF.PR.A was issued as a FixedReset, 5.25%+262, closing 2010-3-10<\/a> after being announced 2010-2-18<\/a>. The new rate of 3.355% is thus a horrific 36% cut in the dividend.<\/p>\n

As stated, the deadline for notification of the company of intent to convert is 5:00 p.m. (Toronto time) on April 15, 2015, but brokers will have earlier internal deadlines. I intend to post on April 10 regarding my recommendation on conversion.<\/p>\n

BRF.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns. BRF.PR.B, if it comes into existence as a FloatingReset, will also be tracked.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brookfield Renewable Energy Partners L.P. has announced: that it has determined the fixed dividend rate on Brookfield Renewable Power Preferred Equity Inc.\u2019s Class A Preference Shares, Series 1 (\u201cSeries 1 Shares\u201d) (TSX: BRF.PR.A) for the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-28493","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28493"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28493\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}