{"id":41387,"date":"2020-09-23T20:34:29","date_gmt":"2020-09-24T01:34:29","guid":{"rendered":"http:\/\/prefblog.com\/?p=41387"},"modified":"2020-09-23T20:34:29","modified_gmt":"2020-09-24T01:34:29","slug":"ftn-pr-a-rate-reset-to-6-75-for-next-year-minimum-5-50-for-next-four","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=41387","title":{"rendered":"FTN.PR.A : Rate Reset To 6.75% For Next Year, Minimum 5.50% For Next Four"},"content":{"rendered":"

Quadravest has announced<\/a>:<\/p>\n

Financial 15 Split Corp. (the \u201cCompany\u201d) announced previously on March 2, 2020 it will extend the termination date of the Company a further five-year period from December 1, 2020 to December 1, 2025.<\/p>\n

In connection with the extension, the Company may amend the prescribed minimum annual rate of cumulative preferential monthly dividends to be paid to the FTN.PR.A Preferred Shares (\u201cPreferred Shares\u201d) for the five-year renewal period, commencing December 1, 2020. The Company may also amend the dividend entitlement of the Preferred Shares on an annual basis.<\/p>\n

Based on current market rates for preferred shares with similar terms, the minimum annual rate for the five-year term will be set at 5.5% (previously 5.25%). The annual payment rate will be set at 6.75% per annum, based on the $10 repayment value. This is an increase of one and a quarter percent from the current rate. The Preferred shareholders have received a total of $8.89 per Share in distributions since inception. The dividend policy for the FTN Class A Shares (\u201cClass A Shares\u201d) will remain unchanged.<\/p>\n

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 30, 2020 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.<\/p>\n

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.<\/p><\/blockquote>\n

Congratulations to Assiduous Reader cowboylutrell<\/i> for his awesome prediction<\/a>:<\/p>\n

Thus, my expectation is that they will announce in the next few days a new annual dividend rate of 6.75% on FTN.PR.A to begin in December 2020, compared to 5.50% currently.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Quadravest has announced: Financial 15 Split Corp. (the \u201cCompany\u201d) announced previously on March 2, 2020 it will extend the termination date of the Company a further five-year period from December 1, 2020 to December 1, …<\/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-41387","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/41387","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=41387"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/41387\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}