Back To Preferred
Preferred Share Description
ECN Capital Corporation (ECN.PR.C) **New Issue**
6.25% Cumulative, Redeemable, Fixed Minimum Rate-Reset Series C preferred shares
Prospectus - May 17, 2017
DBRS Comment: May 15, 2017 - DBRS has today assigned a rating of Pfd-3 (low) to the C$100 million 6.25% Cumulative Five-Year Minimum Rate Reset Preferred Shares, Series C (the Preferred Shares) issued by ECN Capital Corp. The trend on the Preferred Shares is Stable. The proceeds from the Preferred Shares are expected to be used by ECN to originate and finance, directly and indirectly, finance assets, to fund future acquisitions, and for general corporate purposes.
DBRS Credit Update: November 23, 2016 - DBRS has today assigned a rating of Pfd-3 (low) to the C$100 million Cumulative Five-Year Minimum Reset Preferred Shares, Series A issued by ECN Capital Corporation. The trend on the Preferred Shares is Stable.
The ratings of ECN reflect the Company’s solid franchise as a leading commercial lender and lessor in North America with strong origination platforms and sound risk management across multiple asset classes. The ratings also consider the solid earnings generation derived from the franchise, producing more than sufficient pre-provision earnings to absorb the cost of credit with a solid cushion to absorb potentially higher losses that would be expected through the cycle, as well as unexpected losses. Funding is appropriate and aligned with the asset base, while leverage is considered low compared to peers. The Company’s reliance on secured forms of wholesale funding and execution risks associated with the Company’s evolving strategy to become more “asset-lite”, as well as the potential for entry into new business activities currently constrain the ratings.
- DBRS Rating
- Pfd-3(low) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.5625 per share per year
- Dividend Dates
- Payable quarterly on the last day of March, June, September and December
- Dividend Details
- The dividend rate is fixed until June 30, 2017. On June 30, 2017 and on June 30th every 5-years thereafter, the dividend rate will be reset and fixed to equal to the 5-Year Government of Canada Bond Yield (“GCAN5YR”) plus 5.19%, provided that, in any event, the share's dividend rate will not be less than 6.25%.
- The shares are not redeemable by the company prior to June 30, 2022. On June 30, 2022 and on June 30th every 5-years thereafter, the company can redeem the shares at $25.00 per share.
- On June 30, 2022 and on June 30th every five years thereafter, the holders of Series C Preferred Shares will have the option to convert any or all of their shares into an equal number of Cumulative Floating Rate Preferred Shares, Series D. The Series D Floating-rate shares will calculate and pay a dividend quarterly equal to sum of the 3-month Canadian Treasury Bill Rate plus 5.19%. In addition, on June 30, 2027 and on June 30th every five years thereafter, the holders of Floating-Rate, Series D Preferred Shares will have the option to convert any or all of their shares into an equal number of Cumulative Fixed Minimum Rate Reset Series C Preferred Shares. The Floating-Rate Series B shares are redeemable on December 31, 2026 and on December 31st every 5-years thereafter at $25.00 per share. On any other date that is not a Series B Redemption Date after December 31, 2021, the Corporation may redeem the Floating-Rate Series B Preferred Shares in whole or in part by the payment of $25.50 for each share to be redeemed.
- Lead Underwriter(s)
- BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets and TD Securities Inc.
- Dividend Reinvestment Plan
- Not available to preferred shareholders
- Last Updated