By Rebecca Melvin
New York, Oct. 11 - Laurentian Bank of Canada priced C$100 million of class A preferred shares, or 4 million shares at C$25 per share, in a bought deal, to yield 4% with a reset after five years to a floating rate, according to a release.
The Regulation S offering was made pursuant to a short form base shelf prospectus in Canada and was bought by a syndicate of underwriters led by RBC Dominion Securities Inc., CIBC World Markets Inc. and Laurentian Bank Securities Inc.
Holders of the series 11 preferred shares will receive non-cumulative dividends for the initial period to Dec. 15, 2017 at the rate of C$0.25 per preferred share for a yield of 4%.
After that, the dividend rate will reset every five years to be equal to the five-year Government of Canada bond yield plus 260 basis points.
Holders can convert any or all of their preferred shares series 11 into an equal number of non-cumulative class A, series 12 preferred shares on Dec. 15, 2017, and on Dec. 15 every five years thereafter.
Holders of the preferred shares series 12 will receive non-cumulative preferential floating-rate quarterly dividends at a rate of the three-month Government of Canada Treasury Bill yield plus 260 bps.
Proceeds will be used for general corporate purposes.
The offering is set to close Oct. 18, and is subject to regulatory approvals.
Quebec-based Laurentain Bank is a pan-Canadian banking institution.
| Issuer: | Laurentian Bank of Canada
|
| Amount: | C$100 million
|
| Maturity: | Perpetual
|
| Securities: | Class A preferred shares
|
| Bookrunners: | RBC Dominion Securities Inc., CIBC World Markets Inc. and Laurentian Bank Securities Inc.
|
| Dividend: | 4% for first five year
|
| Reset feature: | Every five years to equal to the five-year Government of Canada bond yield plus 260 bps
|
| Conversion: | Convertible from series 11 to series 12, which will be entitled to dividends of three- month Government of Canada Treasury Bill yield plus 260 bps
|
| Pricing date: | Oct. 11
|
| Settlement date: | Oct. 18
|
| Distribution: | Canada
|
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