Readers are referred to the section "Forward-Looking Statements" at the end of this release
MONTRÉAL, Dec. 3, 2018 /CNW Telbec/ - Power Financial Corporation ("Power Financial" or "the
Corporation") (TSX: PWF) (TSX: PWF.PR.T) announced today that it does not intend to exercise its right to redeem all or part
of the currently outstanding 8,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series T (the "Series T shares")
on January 31, 2019. As a result, subject to certain conditions, the holders of the Series T shares
have the right to convert all or part of their Series T shares, on a one-for-one basis, into Non-Cumulative Floating Rate First
Preferred Shares, Series U (the "Series U shares") on January 31, 2019 (the "Conversion Date") in
accordance with the prospectus supplement dated December 4, 2013.
Holders of Series T shares who do not exercise their right to convert their Series T shares into Series U shares on the
Conversion Date will retain their Series T shares.
The dividend rate applicable to the Series T shares for the 5-year period from January 31, 2019
to but excluding January 31, 2024, and the dividend rate applicable to the Series U shares for the
3-month period from January 31, 2019 to but excluding April 30, 2019,
will be determined and announced by way of a news release on January 2, 2019.
Beneficial owners of Series T shares who wish to exercise their conversion right should communicate with their broker or other
nominee to obtain instructions for exercising such right during the conversion period, which will run from January 2, 2019 until January 16, 2019 at 5:00 p.m.
(EST).
The foregoing conversion rights are subject to the conditions that: (i) if Power Financial determines that there would remain
outstanding on the Conversion Date less than 1,000,000 Series U shares, after having taken into account all Series T shares
tendered for conversion into Series U shares, then holders of Series T shares will not be entitled to convert their shares into
Series U shares, and (ii) alternatively, if Power Financial determines that there would remain outstanding on the Conversion Date
less than 1,000,000 Series T shares, after having taken into account all Series T shares tendered for conversion into Series U
shares, then all remaining Series T shares will automatically be converted into Series U shares without the consent of the
holders, on a one-for-one basis, on the Conversion Date.
In either case, Power Financial will give written notice to that effect to the registered holder of Series T shares no later
than January 24, 2019.
About Power Financial
Power Financial Corporation is a diversified international management and holding company with interests substantially in the
financial services sector in Canada, the United States and
Europe. It also has significant holdings in global industrial and services companies based in
Europe. Power Financial Corporation is a member of the Power Corporation Group of
Companies. To learn more, visit www.PowerFinancial.com.
Forward-Looking Statements
Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on
certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's
public subsidiaries, reflect such subsidiaries' disclosed current expectations. Forward-looking statements are provided for the
purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows as
at and for the periods ended on certain dates and to present information about management's current expectations and plans
relating to the future and the reader is cautioned that such statements may not be appropriate for other purposes. These
statements may include, without limitation, statements regarding the operations, business, financial condition, expected
financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook
of the Corporation and its subsidiaries, the intention to not redeem the Series T shares, the giving of notices to the registered
holder and the issuance of a future news release, as well as the outlook for North American and international economies for the
current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend
upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes",
"estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions,
or future or conditional verbs such as "may", "will", "should", "would" and "could".
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give
rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors,
many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the
Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current
expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or
unanticipated impact of general economic, political and market factors in North America and
internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and
the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to
investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting
policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates
and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks,
technological changes, cyber security risks, changes in government regulation and legislation, changes in tax laws, unexpected
judicial or regulatory proceedings, catastrophic events, the Corporation's and its subsidiaries' ability to complete strategic
transactions, integrate acquisitions and implement other growth strategies, and the Corporation's and its subsidiaries' success
in anticipating and managing the foregoing factors.
The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of
historical trends, current conditions and expected future developments, as well as other considerations that are believed to be
appropriate in the circumstances, including that the list of factors in the previous paragraph, collectively, are not expected to
have a material impact on the Corporation and its subsidiaries. While the Corporation considers these assumptions to be
reasonable based on information currently available to management, they may prove to be incorrect.
Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the
occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Corporation's business and material factors or assumptions on
which information contained in forward-looking statements is based is provided in its disclosure materials, including its most
recent Management's Discussion and Analysis and Annual Information Form, filed with the securities regulatory authorities in
Canada and available at www.sedar.com.
SOURCE Power Financial Corporation
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