Emera Inc. does not intend to exercise its right to redeem any of the 8 million outstanding cumulative rate-reset first preferred series F shares of the company.
Holders of the series F shares have an option to convert them on a 1-for-1 basis into cumulative floating-rate first preferred series G shares on Feb. 15. Holders who do not exercise their right to convert their shares will continue to hold series F shares, according to a Jan. 7 release.
The conversion right is subject to conditions, including that it the company determines that there would be less than 1 million series G shares outstanding on the conversion date, then series F shareholders will not be entitled to convert their shares into series G shares.
Alternatively, if the company determines that there would be less than 1 million series F shares outstanding on the conversion date, then all remaining series F shares will automatically be converted into series G shares.
In either case, Emera will give notice to the shareholders by Feb. 8.
The dividend rate applicable for series F shares for the five-year period to February 2025 and for series G shares for the three-month period to May 2020 will be determined on Jan. 16.
Meanwhile, the conversion period will run from Jan. 16 to Jan. 31.