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2w ago

Canadian Banc Corp. Prices Overnight Preferred Offering at $10.45, Expects $62.7 Million

Proceeds will fund a portfolio focused on six major Canadian banks.

Canadian banc corp. announces overnight offering of preferred shares

Overview

  • The company completed overnight marketing of the Preferred Shares, and the sales period has closed.
  • Total gross proceeds are expected to be approximately $62.7 million.
  • The offering price is $10.45 per share for a 6.2% yield, compared with a $10.50 TSX close on Oct. 1.
  • Closing is targeted for on or about Oct. 9 subject to TSX approval and the filing of a prospectus supplement.
  • Net proceeds will be invested primarily in BMO, Scotiabank, CIBC, National Bank, RBC, and TD, with the preferreds paying cumulative floating monthly dividends at Canadian prime plus 1.50% within a 5%–8% band and carrying a DBRS Pfd-3 (low) rating.