- Emera Incorporated (EMA, Financial) announces no redemption of Series A and Series B First Preferred Shares on August 15, 2025.
- Shareholders given options to convert Series A to B and vice versa, based on fixed or floating dividend rates.
- Conversion opportunities will be available again on August 15, 2030, and every five years thereafter.
Emera Incorporated (EMA) has stated its intention not to redeem any portion of its outstanding Cumulative Rate Reset First Preferred Shares, Series A, or Cumulative Floating Rate First Preferred Shares, Series B, on the upcoming date of August 15, 2025. As of now, there are 4,866,814 Series A Shares and 1,133,186 Series B Shares in circulation.
On the Conversion Date, shareholders of the Series A Shares have the option to either retain their shares and continue receiving a fixed quarterly dividend or convert them on a one-for-one basis into Series B Shares, gaining a floating quarterly dividend. Meanwhile, holders of Series B Shares can choose to either keep their floating rate dividends or convert their shares into Series A Shares to receive fixed rate dividends.
The conversion process follows certain conditions. If either Series A or Series B has less than 1,000,000 shares remaining after conversion requests, a mandatory conversion will occur. For Series A, they will convert into Series B if the threshold is not met, and vice versa for Series B. Notice regarding these conversions will be given seven days prior to the conversion date as stipulated in the company's prospectus.
The new dividend rates for the Series A and B shares will be determined on July 16, 2025, applicable for periods starting August 15, 2025. Shareholders wishing to exercise their conversion rights must communicate with their brokers in the conversion period from July 16 to July 31, 2025.
This conversion option will cycle again on August 15, 2030, and then recur every five years, allowing shareholders to adjust according to their investment preferences and market conditions. Further details are outlined in the company’s prospectus available on SEDAR+ and EDGAR.
