Series 7, CPX.PR.G

Capital Power Corporation Preferred shares

6.00% Cumulative Minimum Rate Reset Preference Shares, Series 7

Toronto Stock Exchange (TSX) ticker symbol: CPX.PR.G
Date of TSX Listing: October 4, 2016
Shares Outstanding: 8,000,000
CUSIP: 14042M888

Summary

 
IssueDescriptionTicker SymbolParDividend per Share per AnnumDividend Payable DatesKey Terms
Series 7Cumulative Minimum Rate ResetCPX.PR.G$25.00$1.50Last business day of March, June, September and December

Dividend rate will be reset on December 31, 2021 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 5.26%, provided that, in any event, such rate shall not be less than 6.00%.The Series 7 Shares are redeemable by Capital Power, at its option, on December 31, 2021 and every five years thereafter.

 
 

Dividends Declared 

Declaration DateRecord DateDividend Payment DateDividend Amount per Share
October 26, 2018 
December 14, 2018
December 31, 2018 
$0.375
July 30, 2018September 17, 2018September 28, 2018$0.375
April 27, 2018June 18, 2018June 29, 2018$0.375
February 15, 2018March 16, 2018March 29, 2018$0.375
November 16, 2017December 14, 2017December 29, 2017$0.375
July 26, 2017September 18, 2017September 29, 2017$0.375
April 28, 2017June 19, 2017June 30, 2017$0.375
February 17, 2017March 20, 2017March 31, 2017$0.375
November 17, 2016December 15, 2016December 30, 20160.3616(1)
 (1) The initial quarterly dividend on the Series 7 Cumulative Minimum Rate Reset Preference Shares represents the time period from when the initial share offering closed on October 4, 2016 to December 31, 2016. Future quarterly dividends, if declared, will be $0.375 per quarter or $1.50 per annum for the initial five-year period ending December 31, 2021.
 

Excerpt from Prospectus Supplement

The holders of the Series 7 Shares will be entitled to receive fixed cumulative preferential cash dividends, if, as and when declared by the board of directors of the Company (the "Board of Directors"), payable quarterly on the last business day of each of March, June, September and December at an annual rate of $1.50 per Series 7 Share for the initial period from and including the Closing Date (as defined herein) to, but excluding, December 31, 2021 (the "Initial Fixed Rate Period"). The initial dividend, if declared, will be payable on December 30, 2016 and will be $0.3616 per Series 7 Share, based on the anticipated closing of the Offering on October 4, 2016.

For each five-year period after the Initial Fixed Rate Period (each, a "Subsequent Fixed Rate Period"), the holders of the Series 7 Shares will be entitled to receive fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors, payable quarterly on the last business day of each of March, June, September and December at the Annual Fixed Dividend Rate (as defined herein). The Company will determine on the 30th day prior to the first day of a Subsequent Fixed Rate Period, the annual fixed dividend rate applicable to that Subsequent Fixed Rate Period (the "Annual Fixed Dividend Rate"). Written notice of the Annual Fixed Dividend Rate for the upcoming Subsequent Fixed Rate Period will be provided by the Company to the registered holders on the 30th day prior to the first day of a Subsequent Fixed Rate Period. The Annual Fixed Dividend Rate will be equal to the sum of the Government of Canada Bond Yield (as defined herein) on the 30th day prior to the first day of a Subsequent Fixed Rate Period plus 5.26%, provided that, in any event, such rate shall not be less than 6.00%. See "Details of the Offering" in the Prospectus Supplement.

Option to Convert into Cumulative Floating Rate Preference Shares, Series 8

Holders of the Series 7 Shares will have the right, at their option, to convert their Series 7 Shares into Cumulative Floating Rate Preference Shares, Series 8 (the "Series 8 Shares") on the basis of one Series 8 Share for each Series 7 Share, subject to certain conditions, on December 31, 2021 and on December 31 every five years thereafter. Series 8 Shares will be entitled to floating rate cumulative preferential cash dividends, if, as and when declared by the Board of Directors, payable quarterly on the last business day of each of March, June, September and December in an amount per Series 8 Share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00. The Floating Quarterly Dividend Rate for any Quarterly Floating Rate Period (as defined herein) will be equal to the sum of the T-Bill Rate (as defined herein) plus 5.26% per annum (calculated on the basis of the actual number of days in the applicable Quarterly Floating Rate Period divided by 365 or 366, depending upon the actual number of days in the applicable year) determined on the Floating Rate Calculation Date (as defined herein).

The Series 7 Shares and Series 8 Shares are series of shares in the same class. The conversion right entitles holders to elect periodically which of the two series they wish to hold and does not entitle holders to receive a different class or type of securities. Other than the different dividend rights and redemption rights attached thereto, the Series 7 Shares and Series 8 Shares are identical in all material respects.

 

Eligible Dividend Designation

Dividends are 100 per cent eligible dividends as defined by the Income Tax Act. Under this legislation, individual residents in Canada may be entitled to enhanced dividend tax credits that reduce the income tax otherwise payable.

 
Additional Information
Prospectus Supplement (Sept. 26, 2016)
 
 
Last updated November 16, 2017