Capital Power's Series 1 Share Conversion Opportunity
Capital Power Corporation (TSX: CPX) is creating an exciting opportunity for its shareholders as it opens the conversion privilege for its Cumulative Rate Reset Preference Shares, Series 1. Shareholders holding Series 1 Shares can convert these shares into Cumulative Floating Rate Preference Shares, Series 2, under specific conditions.
Conversion Process Overview
The conversion period lasts from December 1, 2025, to December 16, 2025, at 5:00 p.m. (Toronto time). During this time, registered holders of Series 1 Shares can submit an Election Notice to indicate their choice to convert their shares. If no notice is received, the shareholder will not convert their shares, with the exception of situations involving an Automatic Conversion.
Potential Automatic Conversion
If the number of Series 1 Shares outstanding is less than 1,000,000 by December 31, 2025, all remaining Series 1 Shares will be automatically converted into Series 2 Shares on a one-for-one basis. This assures shareholders that there will be resilient options for their investments depending on demand and market conditions.
Dividend Rates and Structure
Upon conversion, interesting changes in dividend rates come into play. The annual fixed dividend rate for Series 1 Shares is locked at 4.95800% for the next five years while the initial floating rate set for the Series 2 Shares stands at 1.08197% for the first quarter. The floating rates will adjust quarterly, allowing shareholders to benefit from potential upswings in market interest rates.
Book Entry Shares and Rights Management
The Series 1 Shares, issued in a 'book entry only' form, are managed by CDS Clearing and Depository Services Inc. This setup is vital as it requires shareholders to exercise their rights through their brokers to convert shares, ensuring a smooth and structured process during the election period.
Strategic Moves by Capital Power
Capital Power continues to prioritize sustainable energy practices while maintaining its commitment to shareholders. With approximately 12 GW of power generation across 32 facilities, the company's approach emphasizes reliability and low-carbon energy solutions for a balanced and sustainable future.
Future Listing of Series 2 Shares
Upon successful conversion, the Series 2 Shares will be listed on the Toronto Stock Exchange (TSX) under the symbol CPX.PR.B. This listing can provide investors a sense of stability and confidence in their investment choices.
Investor Communication and Engagement
To keep shareholders informed, Capital Power encourages all holders of Series 1 Shares to review their rights carefully. The communications emphasize effective timelines, encouraging early engagement with brokers to ensure a smooth conversion process well before the deadline.
Contacting Investor Relations
Shareholders can reach out to Capital Power's Investor Relations for any inquiries regarding their shares and the conversion process. Our dedicated team ensures all questions are addressed promptly to foster transparent communication.
Frequently Asked Questions
What is the Election Period for converting Series 1 Shares?
The Election Period is from December 1, 2025, to December 16, 2025, at 5:00 p.m. (Toronto time).
What happens if I do not submit an Election Notice?
If no notice is submitted during the Election Period, you will not convert your shares, unless an Automatic Conversion occurs.
What is the initial dividend rate for Series 2 Shares?
The initial floating quarterly dividend rate for Series 2 Shares is set at 1.08197% for the first quarter.
Will Series 2 Shares be listed on a stock exchange?
Yes, the Series 2 Shares will be listed on the Toronto Stock Exchange under the symbol CPX.PR.B after conversion.
Who should I contact for more information about my shares?
For inquiries regarding your shares, you can contact investor relations through their dedicated communication channels for assistance.
