Q: I have a question about FTN.A (and other split shares) and exactly what happens on the 5 year termination date.
I gather that the preferred could be redeemed or rolled over at whatever the new rate is (not 100% sure on the redeemed part) but on the class A are they redeemed and reissued (so your value stays the same over a different #of shares) or do they just truck along?
I'm guessing the latter as they need to match with the preferred. Can they be tendered if the price is lower than the windup amount (which is rarely the case I know but this is just about understanding the mechanics)?
And lastly are they ever wound up in practice?
I gather that the preferred could be redeemed or rolled over at whatever the new rate is (not 100% sure on the redeemed part) but on the class A are they redeemed and reissued (so your value stays the same over a different #of shares) or do they just truck along?
I'm guessing the latter as they need to match with the preferred. Can they be tendered if the price is lower than the windup amount (which is rarely the case I know but this is just about understanding the mechanics)?
And lastly are they ever wound up in practice?