Preferred Series 3

An unlimited number of non‑voting preferred shares, without nominal or par value, issuable in series are authorized. The following Series 3 preferred shares have been authorized as at December 31, 2012:

 

Preferred shares 12,000,000 Series 3 Cumulative Redeemable Preferred Shares

 

 

Redemption

Redeemable, at the Corporation’s option, at $25.00 Cdn per share on August 1, 2017 and on August 1 of every fifth year thereafter.

 

 

Conversion

  • Convertible on a one‑for‑one basis, at the option of the holder, on August 1, 2017 and on August 1 of every fifth year thereafter into Series 2 Cumulative Redeemable Preferred Shares.
  • Fourteen days before the conversion date, if the Corporation determines, after having taken into account all shares tendered for conversion by holders, that there would be less than 1,000,000 outstanding Series 3 Cumulative Redeemable Preferred Shares, such remaining number shall automatically be converted into an equal number of Series 2 Cumulative Redeemable Preferred Shares.
  • Likewise, if the Corporation determines that on any conversion date there would be less than 1,000,000 outstanding Series 2 Cumulative Redeemable Preferred Shares, then no Series 3 Cumulative Redeemable Preferred Shares may be converted.

 

 

Dividend

  • For the five-year period from August 1, 2012 and including July 31, 2017, the Series 3 Cumulative Redeemable Preferred Shares carry fixed cumulative preferential cash dividends at a rate of 3.134% or $0.7835 Cdn per share per annum, payable quarterly on the last day of January, April, July and October of each year at a rate of $0.195875 Cdn, if declared.
  • For each succeeding five‑year period, the applicable fixed annual rate of the cumulative preferential cash dividends calculated by the Corporation shall not be less than 80% of the Government of Canada bond yield, as defined in the Articles of Incorporation.
  • These dividends shall be payable quarterly on the last day of January, April, July and October, if declared.