CALGARY, AB, May 3, 2021 /CNW/ - CU Inc. (TSX:
CIU.PR.A) (TSX: CIU.PR.C)
CU Inc. announced today that it has notified the registered
shareholder of its Cumulative Redeemable Preferred Shares Series 4
("Series 4 Preferred Shares") of a conversion privilege and
applicable dividend rates. As a result, subject to certain
conditions, the holders of Series 4 Preferred Shares will have the
right to choose one of the following options with regard to their
shares:
- To retain any or all of their Series 4 Preferred Shares and
continue to receive a fixed rate quarterly dividend; or
- To convert, on a one-for-one basis, any or all of their Series
4 Preferred Shares into Cumulative Redeemable Preferred Shares
Series 5 ("Series 5 Preferred Shares") of CU Inc. and receive a
floating rate quarterly dividend.
Effective June 1, 2021, the annual
dividend rate for the Series 4 Preferred Shares is set at 2.29% for
the five-year period from and including June
1, 2021 to but excluding June 1,
2026 and the dividend rate for the Series 5 Preferred Shares
is set at an annual rate of 1.46% for the three-month period
commencing June 1, 2021 to but
excluding September 1, 2021. The
dividend rate for the Series 5 Preferred Shares will be reset each
quarter. Both rates were calculated according to the terms
described in the short form prospectus of CU Inc. dated
November 24, 2010.
Beneficial owners of Series 4 Preferred Shares who wish to
exercise their right of conversion should communicate as soon as
possible with their broker or other nominee and ensure that they
follow their instructions in order to meet the deadline to exercise
such right, which is 3 p.m.
(Calgary time) / 5 p.m. (Toronto
time) on May 17, 2021. Any notices
received after this deadline will not be valid. As such, it is
recommended that this be done well in advance of the deadline in
order to provide the broker or other nominee with time to complete
the necessary steps.
The foregoing conversions are subject to the conditions that:
(i) if CU Inc. determines that there would be less than 1,000,000
Series 4 Preferred Shares outstanding on June 1, 2021, then all remaining Series 4
Preferred Shares will automatically be converted into Series 5
Preferred Shares on June 1, 2021, and
(ii) alternatively, if CU Inc. determines that there would be less
than 1,000,000 Series 5 Preferred Shares outstanding on
June 1, 2021 after giving effect to
conversion notices received, no Series 4 Preferred Shares will be
converted into Series 5 Preferred Shares. If either of these
scenarios occurs, CU Inc. will issue a news release to that effect
on or before May 24, 2021.
Holders of the Series 4 Preferred Shares and the Series 5
Preferred Shares will have the opportunity to convert their shares
again on June 1, 2026, and every five
years thereafter as long as the shares remain outstanding.
For more information on the terms of, and risks associated with
an investment in, the Series 4 Preferred Shares and the Series 5
Preferred Shares, please see CU Inc.'s short form prospectus dated
November 24, 2010, which can be found
under CU Inc.'s profile on SEDAR at www.sedar.com.
CU Inc. is a wholly-owned subsidiary of Canadian Utilities
Limited, an ATCO Company. CU Inc. is an Alberta-based corporation with approximately
3,200 employees and assets of $17
billion comprised of rate-regulated utility operations in
electricity and natural gas distribution and transmission. More
information about CU Inc. can be found on the Canadian Utilities
Limited website at www.canadianutilities.com.
Investor & Analyst Inquiries:
Myles Dougan
Director, Investor Relations & External Disclosure
T: 403-292-7879 C: 403-828-2908
Media Inquiries:
Kurt Kadatz
Senior Manager, Corporate Communications
T: 587-228-4571
Forward-Looking Information:
Certain statements contained in this news release may
constitute forward-looking information. Forward-looking information
is often, but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information.
The Company's actual results could differ materially from
those anticipated in this forward-looking information as a result
of regulatory decisions, competitive factors in the industries in
which the Company operates, prevailing economic conditions
(including as may be affected by the COVID-19 pandemic), and other
factors, many of which are beyond the control of the
Company.
The Company believes that the expectations reflected in the
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking information should not be unduly relied
upon.
Any forward-looking information contained in this news
release represents the Company's expectations as of the date hereof
and is subject to change after such date. The Company disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
SOURCE CU Inc.
