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Preferred Share Description
Canadian Utilities Ltd. (CU.PR.I )
4.50% Cumulative, Redeemable, Fixed Minimum, Rate-Reset, 2nd Preferred Shares Series FF
Prospectus - September 16, 2015
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)
- DBRS Rating
- Pfd-2 (high) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.125 per share per year
- Dividend Dates
- On the first day of September, December, March and June
- Dividend Details
- The dividend will never be lower than 4.50% per year. The dividend rate will reset on December 1, 2020 and on December 1st every five years thereafter to a rate equal to the greater of i) sum of the five-year Government of Canada Bond Yield (GCAN5YR) plus 3.69%, and ii) 4.50% per year.
- Redeemable on December 1, 2020, and on December 1st every five years thereafter, at the corporation's option at $25.00 together with all accrued and unpaid dividends.
- The holders of Series FF will have the right to convert their shares into cumulative, redeemable second preference, series GG, Floating-Rate shares on December 1, 2020 and on December 1st every fifth year thereafter. The Floating-Rate, series GG, shares will pay a dividend rate equal to the sum of the Government of Canada 3-month T-Bill Rate plus 3.69%. Dividends calculated and paid quarterly. On December 1, 2025 and on December 1st every five years thereafter holders of the Series GG Floating-Rate shares will have the right to convert their shares into an equal number of Series FF preferred shares.
- Lead Underwriter(s)
- BMO Nesbitt Burns, RBC Dominion Securities, Canaccord Genuity
- 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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