Pref shareholders get an incentive in Barbados but the cold shoulder in Canada

, Canada

The fishing village of Bathsheba faces the Atlantic Ocean on the east coast of Barbados.

At month end a meeting will be held in Barbados involving a Canadian company that demonstrates one way to deal with an outstanding issue of preferred shares. And that plan, which is very positive for the owners of those preferred shares, stands in contrast to some of the tough luck their counterparts have experienced in this part of the world.

Emera (Caribbean) Inc., the holding company for several of Emera’s investments in the Caribbean region, has called a meeting to amend the terms of an issue of preferred shares that comes with a 5.50 per cent coupon. That meeting is one of the final acts in Emera’s acquisition of the remaining 4.4 per cent of Emera (Caribbean).

The wrinkle: Emera Caribbean’s pref shareholders are being offered an incentive to make the switch: a 20 per cent premium to their issue price. Either way the holders are being offered a choice: a cash payment or a depository receipt or a combination of both. Emera Caribbean common shareholders were given the same choice and most of them chose the depository receipt option.

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