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Preferred Share Description
Canadian Utilities Ltd. (CU.PR.C)
3.40% Cumulative, Redeemable, Rate Reset, 2nd Preferred Shares, Series Y
Prospectus - September 15, 2011
DBRS Credit Update: - August 9, 2016 - DBRS has today confirmed the Issuer Rating and Unsecured Debentures rating of Canadian Utilities Limited at “A,” the Commercial Paper rating at R-1 (low) and the Cumulative Preferred Shares rating at Pfd-2 (high). All trends are Stable. The ratings of CU are supported by predictable earnings from its diversified regulated subsidiaries, which are expected to continue to account for over 80% of consolidated earnings over the next several years. DBRS believes that exposure to the non-regulated business will remain manageable. While CU pursues growth opportunities in the non-regulated business, including a natural gas cogeneration project in Mexico, any material projects are expected to be backed by long-term contracts to mitigate merchant risk.
Dividend Rate Reset: June 1, 2017 - Effective June 1, 2017, the annual dividend rate for the Series Y Preferred Shares is set at 3.40% for the five-year period from and including June 1, 2017 to but excluding June 1, 2022
and the dividend rate for the Series Z Preferred Shares is set at an annual rate of 2.95% for the three-month period commencing June 1, 2017 to but excluding September 1, 2017. The dividend rate for the Series Z Preferred Shares will be reset each quarter. Both rates were calculated according to the terms described in the prospectus supplement of Canadian Utilities Limited dated September 15, 2011.
The share's initial dividend rate, when issued, was 4.00%.
- DBRS Rating
- Pfd-2 (high) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.00 per share per year
- Dividend Dates
- On the first day of September, December, March and June
- Dividend Details
- The dividend rate will reset on June 1, 2022 and on June 1st every five years thereafter to a rate equal to the sum of the five-year Government of Canada Bond Yield (GCAN5YR) plus 2.40%.
- Redeemable on June 1, 2022, and on June 1st every five years thereafter, at the corporation's option at $25.00 together with all accrued and unpaid dividends.
- The holders of Series Y will have the right to convert their shares into cumulative, redeemable second preference, series Z, Floating-Rate shares on June 1, 2022 and on June 1st every fifth year thereafter. The Floating-Rate, series Z, shares will pay a dividend rate equal to the sum of the Government of Canada 3-month T-Bill Rate plus 2.40%. Dividends calculated and paid quarterly. On June 1, 2022 and on June 1st every five years thereafter holders of the Series Z Floating-Rate shares will have the right to convert their shares into an equal number of Series Y preferred shares.
- Lead Underwriter(s)
- RBC Capital Markets, BMO Capital Markets, TD Securities and Scotia Capital Inc.
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Not available to preferred shareholders.
- Last Updated