Preferred shares are a class of shares that provide an income stream of dividend payments and entitle the shareholder to preferred status relative to holders of common shares in the event of a company's liquidation. Preferred shares usually have voting rights only when a stated number of dividends have been omitted. Closed-end funds can issue preferred shares as a means of leveraging their common stockholders' returns. In such a case, the proceeds from a preferred offering would be used to increase the investment portfolio of the Company.
Currently, CGI has one series of Class A preference shares outstanding:
|TSX Symbol||Issue Date||Number of Shares Outstanding||Issue Size||Coupon|
|Series 4||CGI.PR.D||May 30, 2013||3,000,000||$75,000,000.00||3.75%|
Each of the series above pays quarterly dividends on March 15, June 15, September 15 and December 15. Full details concerning the terms of these shares, including redemption features, are provided in the respective prospectuses below:
Download Series 4 Prospectus
In addition, CGI had three series of Class A preference shares that were redeemed in accordance with the terms of their short form prospectuses. CGI’s $60 million 5.40% Class A preference shares, Series 1, which were issued on October 5, 1998, were redeemed on October 6, 2008. CGI’s $75 million 4.65% Class A preference shares, Series 2, which were issued on November 4, 2003, were redeemed on May 29, 2013. CGI’s $75 million 3.90% Class A preference shares, Series 3, which were issued on March 3, 2006, were redeemed on June 10, 2016.