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Preferred Share Description
Shaw Communications Inc. (SJR.PR.A )
2.791% Cumulative, Redeemable, Rate Reset, Class 2 preferred shares, Series A
Prospectus - May 20, 2011
DBRS Credit Rating: November 21, 2018 - DBRS confirmed the Issuer Rating and Senior Notes rating of Shaw Communications Inc. at BBB (low) and its Preferred Shares rating at Pfd-3 (low). All trends are Stable. The confirmations reflect better-than-expected subscriber growth in the Company’s wireless division, which mitigates DBRS’s concerns over subscriber losses in the core cable business, relatively low leverage and the Company’s balance allocation of capital. The ratings continue to reflect Shaw’s well-established brand and market position in Western Canada, high-quality network and wireless growth opportunity. The ratings also consider the intense competitive landscape, high capital intensity, high dividend payout and risks associated with regulatory change.
Shaw’s earnings profile remains supportive of the current credit ratings. This view reflects Shaw’s operating performance, which witnessed significant wireless average revenue per user (ARPU) growth year over year and the commencement of the Total Business Transformation initiative that should enhance internal operating efficiencies and the customer experience and ultimately help drive future profitability.
Dividend Note: On June 30, 2016, the annual dividend rate was reset from its original 4.50% to 2.791%.
- DBRS Rating
- Pfd-3 (low) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $0.69775 per share per year
- Dividend Dates
- On the last day of September, December, March and June
- Dividend Details
- The dividend will be reset on June 30, 2021 and on June 30th in every fifth year thereafter. The annual dividend rate will be set to equal the Government of Canada Yield (GCAN5YR) plus 2.00%.
- Redeemable at the issuer's option on June 30, 2021 and on June 30th in every fifth year thereafter at a price equal to $25.00.
- Convertible, at the shareholder's option into Series B Floating-Rate preferred shares on June 30, 2021 and on June 30th in every fifth year thereafter. The Series B Floating Rate preferred shares will calculate and pay a quarterly dividend equal to the Government of Canada 3-month T-Bill Rate plus 2.00%. In addition, holders of the Series B Floating Rate shares will have the right to convert their shares into an equal number of the Series A preferred shares on June 30, 2026 and on June 30th every five years thereafter.
- Lead Underwriter(s)
- TD Securities Inc., CIBC World Markets, RBC Dominion Securities
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Not available to preferred shareholders.
- Last Updated