Power Financial holders may convert five-year rate reset preferreds

By Susanna Moon

Chicago, Dec. 3 – Power Financial Corp. said holders may exercise the option to convert its outstanding 8 million non-cumulative five-year rate reset first preferred shares, series T.

The preferreds are convertible on a 1 for 1 basis into non-cumulative floating rate first preferred shares, series U, on Jan. 31, because Power does not plan to exercise the call for the preferreds on that date, according to an announcement.

The dividend rate for the series T shares for the five-year period from Jan. 31 to but excluding Jan. 31, 2024, and the dividend rate for the series U shares for the three-month period from Jan. 31, 2019 to but excluding April 30 will be set and announced on Jan. 2, the release noted.

The conversion period will run from Jan. 2 until 5 p.m. ET on Jan. 16.

The conversion rights require that if Power Financial determines that there would be less than 1 million series U shares left outstanding on the conversion date, then holders of series T shares would not be able to convert their shares into series U shares. On the other hand, if Power Financial determines that there would remain outstanding on the conversion date less than 1 million series T shares, then all remaining series T shares will automatically be converted into series U shares without the consent of the holders on a 1 for 1 basis on the conversion date, the release said.

Power Financial is a Montreal-based diversified financial services management and holding company.

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