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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 10, 2018 - DBRS confirmed the ratings of Canadian Utilities Limited. All trends are Stable. The confirmations reflect solid financial performance at CU’s sizeable and diversified regulated subsidiaries, stable regulations in Alberta and Australia and modest and manageable exposure in the higher-risk non-regulated business. DBRS includes a one-notch uplift in the rating of CU’s Cumulative Preferred Shares, largely because of the low non-consolidated leverage and strong liquidity at the Holdco level.
CU’s consolidated credit metrics weakened slightly in the first half of 2018 compared with 2017, mainly reflecting lower earnings and cash flow from regulated utilities owned by CU Inc. (CUI; rated A (high)/R-1 (low)/Pfd-2 (high) with Stable trends by DBRS (see the CUI report dated July 19, 2018).
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. 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
- $0.85 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.
- Corporate Action
- Alberta-based Canadian Utilities Limited, with approximately 5,200 employees and assets of $21 billion, is an ATCO Company. ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales).
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