{"id":47909,"date":"2025-04-01T01:35:00","date_gmt":"2025-04-01T01:35:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=47909"},"modified":"2025-06-27T23:19:53","modified_gmt":"2025-06-27T23:19:53","slug":"brf-pr-a-to-reset-to-5-203-interconvertible-with-brf-pr-b","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=47909","title":{"rendered":"BRF.PR.A To Reset To 5.203%; Interconvertible With BRF.PR.B"},"content":{"rendered":"

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

that Brookfield Renewable Power Preferred Equity Inc. (\u201cBRP Equity\u201d) has determined the fixed dividend rate on its Class A Preference Shares, Series 1 (\u201cSeries 1 Shares\u201d) (TSX:BRF.PR.A) for the five years commencing May 1, 2025 and ending April 30, 2030 and the floating dividend rate on its Class A Preference Shares, Series 2 (\u201cSeries 2 Shares\u201d) (TSX: BRF.PR.B) for the quarterly dividend payable on July 31, 2025.<\/p>\n

Series 1 Shares<\/p>\n

If declared, the fixed quarterly dividends on the Series 1 Shares during that period will be paid at an annual rate of 5.203% ($0.3251875 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, 2025, to convert all or part of their Series 1 Shares, on a one-for-one basis, into Series 2 Shares, effective April 30, 2025. 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 BRP Equity determines that there would be fewer than 1,000,000 Series 1 Shares outstanding after April 30, 2025, all remaining Series 1 Shares will be automatically converted into Series 2 Shares on a one-for-one basis effective April 30, 2025; and (ii) if BRP Equity determines that there would be fewer than 1,000,000 Series 2 Shares outstanding after April 30, 2025, no Series 1 Shares will be permitted to be converted into Series 2 Shares. There are currently 6,849,533 Series 1 Shares outstanding.<\/p>\n

Series 2 Shares<\/p>\n

The quarterly floating rate dividends on the Series 2 Shares is 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 in respect of the May 1, 2025 to July 31, 2025 dividend period for the Series 2 Shares, if declared, will be $0.3317675 per share, payable on July 31, 2025.<\/p>\n

Holders of Series 2 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on April 15, 2025, to convert all or part of their Series 2 Shares, on a one-for-one basis, into Series 1 Shares, effective April 30, 2025. Holders of Series 2 Shares are not required to elect to convert all or any part of their Series 2 Shares into Series 1 Shares.<\/p>\n

As provided in the share conditions of the Series 2 Shares, (i) if BRP Equity determines that there would be fewer than 1,000,000 Series 2 Shares outstanding after April 30, 2025, all remaining Series 2 Shares will be automatically converted into Series 1 Shares on a one-for-one basis effective April 30, 2025; and (ii) if BRP Equity determines that there would be fewer than 1,000,000 Series 1 Shares outstanding after April 30, 2025, no Series 2 Shares will be permitted to be converted into Series 1 Shares. There are currently 3,110,531 Series 2 Shares outstanding.<\/p><\/blockquote>\n

There has been no press release regarding the conversion results that I can see, but the TMX Money site reports<\/a> 8,372,310 BRF.PR.A shares outstanding and 64,977 of BRF.PR.B<\/a>. Extensive computations have determined that 64,977 is less than the 1,000,000 minimum outstanding requirement, so I’m not quite sure what’s going on. I have sent an eMail:<\/p>\n

In your press release dated 2025-04-01 (see https:\/\/bep.brookfield.com\/press-releases\/bep\/brookfield-renewable-announces-dividend-rates-its-series-1-and-series-2 ), you stated: “As provided in the share conditions of the Series 2 Shares, (i) if BRP Equity determines that there would be fewer than 1,000,000 Series 2 Shares outstanding after April 30, 2025, all remaining Series 2 Shares will be automatically converted into Series 1 Shares on a one-for-one basis effective April 30, 2025; and (ii) if BRP Equity determines that there would be fewer than 1,000,000 Series 1 Shares outstanding after April 30, 2025, no Series 2 Shares will be permitted to be converted into Series 1 Shares. There are currently 3,110,531 Series 2 Shares outstanding.”<\/p>\n

I see no further press release disclosing the results of the conversion right.<\/p>\n

The Toronto Stock Exchange is reporting on tmxmoney.com that there are currently only 64,977 BRF.PR.B outstanding (see attached screenshot); should this be the case, there is an apparent inconsistency with the press release (unless there was a massive repurchase and cancellation in the interim).<\/p>\n

Can you please clarify the results of the conversion and currently outstanding shares for me please?<\/p>\n

Sincerely,<\/p><\/blockquote>\n

<\/p>\n

Screenshot: <\/p>\n

<\/a><\/div>\n

BRF.PR.A was issued as a FixedReset, 5.25%+262, that commenced trading 2010-3-10<\/a> after being announced 2010-2-18<\/a>. It reset to 3.355% in 2015<\/a> and I recommended against conversion<\/a>. Nevertheless, there was a 45% conversion<\/a> to the FloatingReset. The issue reset to 3.137% in 2020<\/a>.<\/p>\n

BRF.PR.B is a FloatingReset, Float+262, that resulted from a 45% conversion<\/a> from BRF.PR.A in 2015.<\/p>\n

Update, 2025-6-27<\/b>: I have received the following response from BRF regarding the number of outstanding shares of BRF.PR.B:<\/p>\n

Please see the results on our website in the Footnote 2 below. https:\/\/bep.brookfield.com\/bep\/stock-distributions\/preferred-shares<\/p>\n

2. On April 15, 2025, a total of 1,619 Class A Preference Shares Series 1 (\u201cSeries 1 Preferred Shares\u201d) outstanding were elected for conversion, on a one-for-one basis, into floating rate Class A Preference Shares Series 2 (\u201cSeries 2 Preferred Shares\u201d) and a total of 1,524,396 Series 2 Preferred Shares outstanding were elected for conversion, on a one-for-one basis, into Series 1 Preferred Shares. Consequently, effective April 30, 2025, Brookfield Renewable have 8,372,310 Series 1 Preferred Shares and 1,587,754 Series 2 Preferred Shares issued and outstanding.<\/p><\/blockquote>\n

So that’s a net 15% conversion to BRF.PR.A, the FixedReset. The TMX<\/a> continues to report 64,977 BRF.PR.B shares outstanding.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brookfield Renewable Partners L.P. has announced: that Brookfield Renewable Power Preferred Equity Inc. (\u201cBRP Equity\u201d) has determined the fixed dividend rate on its 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-47909","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47909","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=47909"}],"version-history":[{"count":5,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47909\/revisions"}],"predecessor-version":[{"id":47968,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/47909\/revisions\/47968"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}