Further to its announcement of December 19, 2019, National Bank of Canada ("National Bank”) (TSX: NA) announced today the dividend rates applicable to the Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series 32 (the "Series 32 Preferred Shares") and the Non-Cumulative Floating Rate First Preferred Shares, Series 33 (the "Series 33 Preferred Shares").
Holders of Series 32 Preferred Shares, should any remain outstanding after February 15, 2020, will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the five-year period commencing on February 16, 2020 and ending on February 15, 2025 will be 3.839%, being equal to the sum of the five-year Government of Canada Bond yield (1.589%) plus 2.25%, as determined in accordance with the terms of the Series 32 Preferred Shares.
Holders of Series 33 Preferred Shares, should any be issued on February 15, 2020, will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on February 16, 2020 and ending on May 15, 2020, will be 3.898%, being equal to the sum of the 90-day Government of Canada Treasury Bill yield (1.648%) plus 2.25%, calculated on the basis of actual number of days elapsed in such quarterly floating rate period divided by 365, as determined in accordance with the terms of the Series 33 Preferred Shares.
Holders of the Series 32 Preferred Shares have, subject to certain conditions, the right to convert all or part of their Series 32 Preferred Shares on a one-for-one basis into Series 33 Preferred Shares on February 15, 2020.
Beneficial owners of Series 32 shares who wish to exercise their conversion right 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 January 31, 2020 at 5:00 p.m. (EST).