By Aleesia Forni
Virginia Beach, Dec. 2 - Power Financial Corp. announced on Monday that it priced C$175 million of non-cumulative five-year rate reset first preferred shares to yield a 4.2% dividend for the initial period ending Jan. 31, 2019.
The company sold 7 million series T preferred shares at C$25.00 per share.
BMO Capital Markets, RBC Capital Markets and Scotia Capital Inc. were the underwriters.
The deal includes an over-allotment option of C$25 million, or 1 million shares.
On Jan. 31 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 237 basis points.
Holders will have the right to convert the series T shares into non-cumulative floating-rate first preferred shares, series D, on Jan. 31, 2019 and on Jan. 31 of every fifth year and receive quarterly floating-rate cumulative dividends at a rate equal to the 90-day Government of Canada treasury bill rate plus 237 bps.
The company plans to use net proceeds from the issue to supplement its financial resources and for general corporate purposes.
Power Financial intends to redeem all of its $175 million first preferred shares, series M, on Jan. 31, 2014 upon completion of the series T offering.
| Issuer: | Power Financial Corp.
|
| Amount: | C$175 million, 7 million shares
|
| Greenshoe: | C$25 million, 1 million shares
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| Securities: | Non-cumulative five-year rate reset first preferred shares, series T
|
| Bookrunners: | BMO Capital Markets, RBC Capital Markets, Scotia Capital Inc.
|
| Dividend: | 4.2%
|
| Price: | C$25.00 per share
|
| Call feature: | Jan. 31, 2019 and Jan. 31 every fifth year thereafter
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 11
|
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