Post by
marcrobert on Dec 04, 2023 6:47pm
Preferred series A reset rate - 6.469% - DEC 4 news
There we go. Do nothing= keep series A and do not choose to convert to series B
Current price $20.60. Effective Series A yield for the next 5 years starting 2024 = 6.469% on $25 face value ($1.61725 div) = $7.85% on the current price of $20.60. If you want 7.85% for 5 years, do nothing, i.e. do NOT choose to convert to series B (higher for now, but likely lower soon enough).
"With respect to any Series A Preferred Shares that remain outstanding after January 2, 2024, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the board of directors of the Company (the "Board"). The dividend rate for the 5-year period from and including December 31, 2023 to but excluding December 31, 2028 will be 6.469%, being equal to the 5-year Government of Canada bond yield determined as of today plus 2.94%, in accordance with the terms of the Series A Preferred Shares.
With respect to any Series B Preferred Shares that may be issued on January 2, 2024, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, if, as and when declared by the Board. The dividend rate for the 3-month floating rate period from and including December 31, 2023 to but excluding March 31, 2024 will be 7.982%, being equal to the 3-month Government of Canada Treasury Bill yield determined as of today plus 2.94%, calculated on the basis of the actual number of days in such quarterly period divided by 365, in accordance with the terms of the Series B Preferred Shares.