Fortis Inc. Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shar (FTS.PR.H)

Fortis Inc. Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shar (FTS.PR.H $19.61)
- $19.61 P/E (TTM): 21.13X Cap: $37.26B
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Fortis Inc. Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shar (FTS.PR.H $19.61)
- $19.61 P/E (TTM): 21.13X Cap: $37.26B
- View FTS.PR.H Profile
- View Questions on FTS.PR.H

Q: Good morning,
I have just been informed of a Conversion Privilege on FTS.PR.H. Two options (1) do nothing - retaining FTS,PR.H or (2) Convert to FTS.PR.I on a 1 to 1 basis.
I am always puzzled by these conversions.
These two preferred shares both seem to trade at either 10$ or just below that mark. However FTS.PR.I 's average volume is half of that of FTS.PR.H (2083 vs 4549 Ref. Globe Investor). FTS.PR.I has 2.9 M outstanding shares and FTS.PR. H has 7.0 M
I am wondering what is the catch,,, should I take the conversion ?
Looking at all this information, I think I would likely keep my FTS.PR.H since it has more outstanding shares therefore the average trading volume is more than double that of the FTS.PR.I ... easier to sell if need be.
Is this reasoning sensible or am I missing something. What is the point of this "Conversion Privilege"?
This is the last time I invest in preferred shares, as frankly they have not been a good investment.

Best Regards in these difficult times and stay healthy.

Elaine

Read Answer Asked by Elaine on April 24, 2020