Capital Power Corporation Preferred shares

2.62100% Cumulative Rate Reset Preference Shares, Series 1

Toronto Stock Exchange (TSX) ticker symbol: CPX.PR.A
Date of TSX Listing: December 16, 2010
Shares Outstanding: 5,000,000
CUSIP: 14042M300

Preferred Shares (Series 1) conversion privilege and dividend rate notice (Dec/20)

On December 1, 2020, Capital Power notified registered shareholders of the Company’s Cumulative 5-Year Rate Reset Preference Shares, Series 1 (Series 1 Shares) of the conversion privilege and dividend rate notice. Series 1 shareholders had the right to elect to convert any or all of their Series 1 Shares into an equal number of Cumulative Floating Rate Preference Shares, Series 2 (Series 2 Shares). Following the conversion deadline on December 16, 2020, 687,245 Series 1 Shares were tendered for conversion, which was less than the one million shares required for conversion into Series 2 Shares. Accordingly, there were no Series 2 Shares issued as at December 31, 2020. Effective December 31, 2020, the Annual Fixed Dividend Rate for the Series 1 Shares for the next five year period was reset from 3.06% to 2.62100%.

Preferred Shares (Series 1) conversion privilege and dividend rate notice (Dec/15)

On December 1, 2015, Capital Power notified registered shareholders of the Company’s Cumulative 5-Year Rate Reset Preference Shares, Series 1 (Series 1 Shares) of the conversion privilege and dividend rate notice. Series 1 shareholders had the right to elect to convert any or all of their Series 1 Shares into an equal number of Cumulative Floating Rate Preference Shares, Series 2 (Series 2 Shares). Following the conversion deadline on December 16, 2015, approximately 930,800 Series 1 Shares were tendered for conversion, which was less than the one million shares required for conversion into Series 2 Shares. Accordingly, there were no Series 2 Shares issued as at December 31, 2015. Effective December 31, 2015, the Annual Fixed Dividend Rate for the Series 1 Shares for the next five year period was reset from 4.60% to 3.06%.

Excerpt from Initial Public Offering (IPO) Announcement

On December 1, 2010 Capital Power Corporation (“Capital Power”) (TSX:CPX) announced today that it will issue 5,000,000 Cumulative Rate Reset Preference Shares, Series 1 (the “Series 1 Shares”) at a price of $25 per Series 1 Share (the “Offering”) for aggregate gross proceeds of $125 million on a bought deal basis with a syndicate of underwriters, led by TD Securities Inc. and RBC Capital Markets.

The Series 1 Shares will pay fixed cumulative dividends of $1.15 per share per annum, yielding 4.60% per annum, payable on the last day of March, June, September and December of each year, as and when declared by the board of directors of Capital Power, for the initial five-year period ending December 31, 2015. The first quarterly dividend of $0.3308 per share is expected to be paid on March 31, 2011. The dividend rate will be reset on December 31, 2015 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 2.17%. The Series 1 Shares are redeemable by Capital Power, at its option, on December 31, 2015 and on December 31 of every fifth year thereafter.

Holders of Series 1 Shares will have the right to convert all or any part of their shares into Cumulative Floating Rate Preference Shares, Series 2 (the “Series 2 Shares”), subject to certain conditions, on December 31, 2015 and on December 31 of every fifth year thereafter. Holders of Series 2 Shares will be entitled to receive a cumulative quarterly floating dividend at a rate equal to the sum of the then 90-day Government of Canada Treasury Bill yield plus 2.17%, as and when declared by the board of directors of Capital Power.

The Offering is expected to close on or about December 16, 2010. Net proceeds will be lent to Capital Power L.P. pursuant to a subordinated debt agreement. Capital Power L.P. will use the funds to repay a portion of the outstanding balance under its credit facilities which were used to fund the acquisition of Island Generation and for general corporate purposes.

Standard & Poor’s, a division of the McGraw Hill Companies, Inc. (“S&P”) has assigned a preliminary rating of P-3 (High) for the Series 1 Shares and DBRS Limited (“DBRS”) has assigned a rating of Pfd-3 (low) for the Series 1 Shares.

The Series 1 Shares will be issued pursuant to a short form prospectus that will be filed with securities regulatory authorities in Canada. The Offering is subject to receipt of all necessary regulatory and stock exchange approvals.

The Series 1 Shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy any security, and shall not constitute an offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

 

Summary

Issue Description Ticker Symbol Par Dividend per Share per Annum Dividend Payable Dates Key Terms
Series 1 Cumulative Rate Reset CPX.PR.A $25.00 $0.65525 Last business day of March, June, September and December Dividend rate was reset on December 31, 2020 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 2.17%. The Series 1 Shares are redeemable by Capital Power, at its option, on December 31, 2020 and on December 31 of every fifth year thereafter.

 

Dividends Declared

Declaration Date Record Date Dividend Payment Date Dividend Amount per Share
July 30, 2024 September 16, 2024 September 27, 2024 $0.1638125
April 30, 2024 June 17, 2024 June 28, 2024 $0.1638125
February 27, 2024 March 15, 2024 March 28, 2024 $0.1638125
October 31, 2023 December 14, 2023 December 29, 2023 $0.1638125
August 2, 2023 September 18, 2023 September 29, 2023 $0.1638125
April  28, 2023 June 19, 2023 June 30, 2023 $0.1638125
February 28, 2023 March 20, 2023 March 31, 2023 $0.1638125
October 28, 2022 December 15, 2022 December 30, 2022 $0.1638125
August 2, 2022 September 19, 2022 September 30, 2022 $0.1638125
April 29, 2022 June 17, 2022 June 30, 2022 $0.1638125
February 23, 2022 March 18, 2022 March 31, 2022 $0.1638125
October 26, 2021 December 16, 2021 December 31, 2021 $0.1638125
July 30, 2021 September 17, 2021 September 30, 2021 $0.1638125
April 29, 2021 June 17, 2021 June 30, 2021 $0.1638125
February 18, 2021 March 18, 2021 March 31, 2021 $0.1638125
October 30, 2020 December 16, 2020 December 31, 2020 $0.19125
July 30, 2020 September 17, 2020 September 30, 2020 $0.19125
May 1, 2020 June 17, 2020 June 30, 2020 $0.19125
February 21, 2020 March 18, 2020 March 31, 2020 $0.19125
October 25, 2019 December 16, 2019 December 31, 2019 $0.19125
July 29, 2019 September 17, 2019 September 30, 2019 $0.19125
April 26, 2019 June 17, 2019 June 28, 2019 $0.19125
February 15, 2019 March 18, 2019 March 29, 2019 $0.19125
October  26, 2018 December 14, 2018 December 31, 2018 $0.19125
July 30, 2018 September 17, 2018 September 28, 2018 $0.19125
April 27, 2018 June 18, 2018 June 29, 2018 $0.19125
February 15, 2018 March 16, 2018 March 29, 2018 $0.19125
November 16, 2017 December 14, 2017 December 29, 2017 $0.19125
July 26, 2017 September 18, 2017 September 29, 2017 $0.19125
April 28, 2017 June 19, 2017 June 30, 2017 $0.19125
February 17, 2017 March 20, 2017 March 31, 2017 $0.19125
November 17, 2016 December 15, 2016 December 30, 2016 $0.19125
July 25, 2016 September 19, 2016 September 30, 2016 $0.19125
April 22, 2016 June 17, 2016 June 30, 2016 $0.19125
February 18, 2016 March 17, 2016 March 31, 2016 $0.19125
November 18, 2015 December 16, 2015 December 31, 2015 $0.2875
July 27, 2015 September 17, 2015 September 30, 2015 $0.2875
April 24, 2015 June 17, 2015 June 30, 2015 $0.2875
February 25, 2015 March 18, 2015 March 31, 2015 $0.2875
November 20, 2014 December 16, 2014 December 31, 2014 $0.2875
July 25, 2014 September 17, 2014 September 30, 2014 $0.2875
April 25, 2014 June 17, 2014 June 30, 2014 $0.2875
February 28, 2014 March 18, 2014 March 31, 2014 $0.2875
November 20, 2013 December 16, 2013 December 31, 2013 $0.2875
July 26, 2013 September 17, 2013 September 30, 2013 $0.2875
April 26, 2013 June 17, 2013 June 28, 2013 $0.2875
March 1, 2013 March 15, 2013 March 28, 2013 $0.2875
November 20, 2012 December 14, 2012 December 31, 2012 $0.2875
July 26, 2012 September 17, 2012 September 28, 2012 $0.2875
April 27, 2012 June 18, 2012 June 29, 2012 $0.2875
March 9, 2012 March 21, 2012 March 30, 2012 $0.2875
November 23, 2011 December 15, 2011 December 30, 2011 $0.2875
July 28, 2011 September 19, 2011 September 30, 2011 $0.2875
April 29, 2011 June 17, 2011 June 30, 2011 $0.2875
March 8, 2011 March 18, 2011 March 31, 2011 $0.3308(1)

(1) Initial quarterly dividend represents the time period from when the initial share offering closed on December 16, 2010 to March 31, 2011.

 

Eligible Dividend Designation

The 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.

Last updated: November 16, 2017