DETAILS OF CF PREFERRED SHARES:
Series A preferred shares:
| YIELD: Canaccord Financial Series A preferred shares pay fixed, cumulative, preferential cash dividends payable quarterly, yielding 5.50% annually for the initial period ending September 30, 2016 ("Initial Fixed Rate Period")* |
| RATING: DBRS has assigned the Series A preferred shares a rating of PFD-3 (low). |
| CONVERSION DATE: After the initial period ending September 30, 2016, the dividend rate will be reset every five years at the rate equal to the 5-year Government of Canada bond yield plus 3.21%. |
| CONVERSION OPTION: On September 30, 2016 and on every September 30th every five years after, holders of Series A preferred shares will have the right, at their option, to convert any or all of their shares into an equal number of Cumulative Floating Rate First Preferred Series B shares. |
Series B preferred shares:
| The holders of Series B preferred shares will be entitled to receive floating rate, cumulative, preferential dividends payable quarterly, at a rate equal to the three-month Government of Canada Treasury Bill yield plus 3.21%. |
Series C preferred shares:
| YIELD: Canaccord Financial Series C preferred shares pay fixed, cumulative, preferential cash dividends payable quarterly, yielding 5.75% annually for the initial period ending June 30, 2017 ("Initial Fixed Rate Period")* |
| RATING: DBRS has assigned the Series C preferred shares a rating of PFD-3 (low with a negative trend). |
| CONVERSION DATE: After the initial period ending June 30, 2017, the dividend rate will be reset every five years at the rate equal to the 5-year Government of Canada bond yield plus 4.03%. |
| CONVERSION OPTION: On September 30, 2017 and on every September 30th every five years after, holders of Series C preferred shares will have the right, at their option, to convert any or all of their shares into an equal number of Cumulative Floating Rate First Preferred Series D shares. |
Series D preferred shares
| The holders of Series D preferred shares will be entitled to receive floating rate, cumulative, preferential cash dividends payable quarterly, at a rate equal to the three-month Government of Canada Treasury Bill yield plus 4.03%. |
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DIVIDEND INFORMATION:
Series A Distribution rate:
During the Initial Fixed Rate Period, cash dividends will be paid totaling an annual amount equal to $1.3750 per Series A Preferred Share.
The initial dividend of $0.37295 per Series A Preferred Share was paid on September 30, 2011. On a quarterly basis during the Fixed Rate period, dividends of $0.34375 will be distributed on the dates provided below.
The distribution rate for each quarterly distribution after the Initial Fixed Rate Period will be reset every five years at the rate equal to the 5-year Government of Canada bond yield plus 3.21%
Series C Distribution rate:
During the Initial Fixed Rate Period, cash dividends will be paid totaling an annual amount equal to $1.4375 per Series C Preferred Share.
The initial dividend, if declared, of $0.3190 per Series C Preferred Share will be paid on July 3, 2012. On a quarterly basis during the Fixed Rate period, dividends of $0.359375 will be distributed on the dates provided below.
The distribution rate for each quarterly distribution after the Initial Fixed Rate Period will be reset every five years at the rate equal to the 5-year Government of Canada bond yield plus 4.03%
Payments:
Quarterly distribution payments will be made on the following days:
- March 31
- June 30
- September 30
- December 31
*As and when declared by Canaccord Financial Inc.'s Board of Directors