By Cristal Cody
Prospect News, May 19 - Shaw Communications Inc. said Thursday it increased the offering of its cumulative redeemable rate reset preferred shares to C$300 million from C$200 million.
The sale was increased to 12 million shares from 8 million shares.
The series A preferred stock (DBRS: Pfd-3) priced at C$25.00 per share with a 4.5% dividend for the initial period ending June 30, 2016. Thereafter the dividend rate will be reset every five years at a rate equal to the then current five-year Government of Canada bond yield plus 200 basis points.
TD Securities Inc. and CIBC World Markets Inc. were the lead managers.
The deal includes an over-allotment option of 2 million shares, or C$50 million.
The proceeds will be used for working capital and general corporate purposes.
Calgary, Alta.-based Shaw Communications is a telecommunications, cable and internet provider.
| Issuer: | Shaw Communications Inc.
|
| Amount: | C$300 million, or 12 million shares, increased from C$200 million, or 8 million shares
|
| Greenshoe: | C$50 million, or 2 million shares
|
| Maturity: | June 30, 2016
|
| Securities: | Cumulative redeemable rate reset preferred shares
|
| Bookrunners: | TD Securities Inc., CIBC World Markets Inc.
|
| Dividend: | 4.5%, to be reset June 30, 2016 and every five years afterward at five-year Government of Canada bond rate plus 200 bps
|
| Price: | C$25.00 per share
|
| Pricing date: | May 19
|
| Settlement date: | May 31
|
| Rating: | DBRS: Pfd-3
|
| Distribution: | Canada
|
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