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Preferred Share Description
ECN Capital Corporation (ECN.PR.A)
6.50% Cumulative, Redeemable, Fixed Minimum Rate-Reset Series A preferred shares
Prospectus - November 23, 2016
Marketing Sheet - November 23, 2016
Company Overview - October 2016
DBRS Credit Update: April 2, 2019 - DBRS confirmed the BBB (low) Long-Term Issuer Rating and Pfd-3 (low) Preferred Shares rating of ECN Capital Corp. The trend on all ratings is Stable.
At the same time, DBRS confirmed the Support Assessment of SA3, which results in the Company’s Long-Term Issuer Rating being equalized with its Intrinsic Assessment (IA) of BBB (low).
- DBRS Rating
- Pfd-3 (low) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.625 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 December 31, 2021. On December 31, 2021 and on December 31st 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 5.44%, provided that, in any event, the rate will not be less than 6.50%.
- The shares are not redeemable by the company prior to December 31, 2021. On December 31, 2021 and on December 31st every 5-years thereafter, the company can redeem the shares at $25.00 per share.
- On December 31, 2021 and on December 31 every five years thereafter, the holders of Series A Preferred Shares will have the option to convert any or all of their Series A Preferred Shares into an equal number of Cumulative Floating Rate Preferred Shares, Series B. The Series B Floating-rate shares will calculate and pay a dividend quarterly equal to sum of the 3-month Canadian Treasury Bill Rate plus 5.44%. In addition, on December 31, 2026 and on December 31st every five years thereafter, the holders of Floating-Rate, Series B Preferred Shares will have the option to convert any or all of their shares into an equal number of Cumulative 5-Year Minimum Rate Reset Preferred Shares Series A. 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, RBC Capital Markets, and TD Securities
- Dividend Reinvestment Plan
- Not available to preferred shareholders
- Corporate Action
- Toronto, Ontario-based ECN Capital Corp. (TSX: ECN) is a leading North American commercial equipment finance company that originates, co-invests in and manages asset-based financings and related service programs. With managed and advised assets of more than US$31 billion, ECN Capital Corp. is a leading provider of prime credit portfolios to more than ninety US financial institutions. ECN Capital originates, manages and advises on prime credit assets offering unsecured and secured consumer portfolio solutions as well as credit card portfolios. These services are offered through three operating businesses: Service Finance, Triad Financial Services and The Kessler Group.
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