Bombardier Inc. T.BBD.A

RE:RE:WTF?? - PR.C vs PR.D -9% vs -28% since end 2019??

[tomski1981]

pierrelebel wrote:
marcrobert - Both preferred shares but quite different.

The D is a five year reset where the rate is redetermined every five years and convertible into class B preferred under certain conditions

The C are "perpetual".  The dividend rate is fixed and will not change.  However, the big difference is that the C can be converted by Bombardier into 12.5 common B shares and that explains the larger drop in its value in the last two months as it follows the drop in B shares

• The Corporation may, subject to the approval of the Toronto Stock Exchange and such other stock exchanges on which the Series 4 Cumulative Redeemable Preferred Shares are then listed, at any time convert all or any of the outstanding Series 4 Cumulative Redeemable Preferred Shares into fully paid and nonassessable Class B Shares (Subordinate Voting) of the Corporation.
• The number of Class B Shares (Subordinate Voting) into which each Series 4 Cumulative Redeemable Preferred Shares may be so converted will be determined by dividing the then applicable redemption price together with all accrued and unpaid dividends to, but excluding the date of conversion, by the greater of $2.00 Cdn and 95% of the weightedaverage trading price of such Class B Shares (Subordinate Voting) on the Toronto Stock Exchange for the period of 20 consecutive trading days, which ends on the fourth day prior to the date specified for conversion or, if that fourth day is not a trading day, on the trading day immediately preceding such fourth day.

Link to Bombardier[/url]

PS - Personally I do not expect Bombardier to convert the C preferred into B common shares but the market seems to see a risk.