Capital Power provides notice of Preferred Shares (Series 1) conversion privilege and dividend rate notice
EDMONTON, Alberta, Dec. 01, 2025 (GLOBE NEWSWIRE) -- Capital Power Corporation (“Capital Power”) (TSX: CPX) announced today that it has notified registered shareholders of its Cumulative Rate Reset Preference Shares, Series 1 (the “Series 1 Shares”) (TSX: CPX.PR.A) of the conversion privilege and dividend rate applicable to the Series 1 Shares.
Subject to certain conditions, beginning on December 1, 2025 and ending at 5:00 p.m. (Toronto time) on December 16, 2025 (the “Election Period”), each registered holder of Series 1 Shares will have the right to elect to convert any or all of their Series 1 Shares into an equal number of Cumulative Floating Rate Preference Shares, Series 2 (the “Series 2 Shares”) by delivering a completed election notice (an “Election Notice”) to the Corporation.
If Capital Power does not receive an Election Notice from a holder of Series 1 Shares during the Election Period, then such holder will be deemed not to have exercised its right to convert (except in the case of an Automatic Conversion, as described below). Holders of the Series 1 Shares and the Series 2 Shares will have the opportunity to convert their shares again on December 31, 2030, and every five years thereafter as long as such shares remain outstanding.
On December 1, 2025, the annual fixed dividend rate for the Series 1 Shares was set for the next five-year period (from and including December 31, 2025, to but excluding December 31, 2030) at 4.95800% and the floating quarterly dividend rate for the Series 2 Shares was set for the first quarterly floating rate period (being the period from and including December 31, 2025, to but excluding March 31, 2026) at 1.08197%. The floating quarterly dividend rate for the Series 2 Shares will be reset every quarter.
The Series 1 Shares are issued in “book entry only” form and, as such, the sole registered holder of the Series 1 Shares is CDS Clearing and Depository Services Inc. (“CDS”). Accordingly, all rights of beneficial holders of Series 1 Shares must be exercised through CDS or the CDS participant through which the Series 1 Shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series 1 Shares into Series 2 Shares is 3:00 p.m. (MT) / 5:00 p.m. (ET) on December 16, 2025. Election Notices received after this deadline will not be valid. Beneficial holders of Series 1 Shares who wish to exercise their rights to convert should contact their broker or other intermediary for more information well in advance of the deadline in order to provide the broker or intermediary with time to complete the necessary steps.
After December 16, 2025, (i) if Capital Power determines that fewer than 1,000,000 Series 1 Shares would remain outstanding on December 31, 2025, all remaining Series 1 Shares will be automatically converted into Series 2 Shares on a one-for-one basis effective December 31, 2025 (an “Automatic Conversion”); or (ii) if Capital Power determines that fewer than 1,000,000 Series 2 Shares would remain outstanding after December 31, 2025, no Series 1 Shares will be permitted to be converted into Series 2 Shares effective December 31, 2025. There are currently 5,000,000 Series 1 Shares outstanding.
The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 2 Shares effective upon conversion. Listing of the Series 2 Shares is subject to Capital Power fulfilling all TSX listing requirements and, upon approval, the Series 2 Shares will be listed on the TSX under the trading symbol CPX.PR.B.
For more information on the terms of, rates and risks associated with an investment in, the Series 1 Shares and the Series 2 Shares, please see Capital Power’s Short Form Prospectus dated December 8, 2010 which is available electronically on the System for Electronic Data Analysis and Retrieval + (“SEDAR+”) at www.sedarplus.ca or on Capital Power 's website at capitalpower.com.
Territorial Acknowledgement
In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the traditional and contemporary home of many Indigenous Peoples of the Treaty 6 region and Métis Homeland. We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented power producer with approximately 12 GW of power generation at 32 facilities, plus battery energy storage across North America. We prioritize safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems, and creating balanced solutions for our energy future. We are Powering Change by Changing PowerTM.
For more information, please contact:
Investor and Media Relations:
Media Relations
Katherine Perron
(780) 392-5335
kperron@capitalpower.com
Investor Relations
Noreen Farrell
(403) 461-5236
investor@capitalpower.com
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