Canadian Banc Corp. Announces Treasury Offering
February 20 2014 - 11:17AM
Marketwired
Canadian Banc Corp. Announces Treasury Offering
TORONTO, ONTARIO--(Marketwired - Feb 20, 2014) - Canadian Banc
Corp. (the "Company") is pleased to announce it has filed a short
form prospectus in each of the provinces of Canada with respect to
an additional offering of Preferred Shares and Class A Shares (a
"Unit") of the Company. The offering price per Unit is expected to
be in line with current market prices. The offering will be co-led
by National Bank Financial Inc., CIBC World Markets Inc., RBC
Capital Markets and TD Securities Inc.
The net proceeds of
the treasury offering will be used by the Company to invest in a
portfolio of six publicly traded Canadian Banks as follows:
Bank
of Montreal |
|
Canadian Imperial Bank of Commerce |
|
Royal
Bank of Canada |
|
|
|
|
|
The
Bank of Nova Scotia |
|
National Bank of Canada |
|
The
Toronto-Dominion Bank |
Shares held within
the portfolio are expected to range between 5-20% in weight but may
vary at any time. To generate additional returns above the dividend
income earned on the portfolio, the Company will engage in a
selective covered call writing program.
The Company's
objectives are to:
Preferred
Shares:
- provide holders with cumulative preferential floating rate
monthly cash dividends at a rate per annum equal to the prevailing
Canadian prime rate plus 0.75%, with a minimum annual rate of 5.0%
and a maximum annual rate of 7% based on original issue price;
and
- On or about December 1, 2018 or such other date as the Company
may determine (the "termination date") to pay holders the original
issue price ($10) of those shares.
Class A Shares
- provide holders with regular monthly cash distributions
currently targeted to be at the annualized rate of 10% based upon
the volume-weighted average trading price of the Class A Shares on
the TSX for the last three trading days of the preceding month
(effective September 17, 2013); and
- On the termination date to pay holders the original issue price
($15) of those shares.
The sales period of
this overnight offering is expected to end at 12:00 p.m. EST on
February 28, 2014. A copy of the preliminary short form prospectus
is available from the syndicate of agents.
The syndicate of
agents consists of National Bank Financial Inc., CIBC World Markets
Inc., RBC Dominion Securities Inc., TD Securities Inc., BMO Nesbitt
Burns Inc., GMP Securities L.P., Canaccord Genuity Corp.,
Desjardins Securities Inc., Mackie Research Capital Corporation,
Manulife Securities Incorporated and Raymond James Ltd.
Commissions,
trailing commissions, management fees and expenses all may be
associated with mutual fund investments. Investors should read the
prospectus before investing. Mutual funds are not guaranteed, their
values change frequently and past performance may not be
repeated.
Canadian Banc Corp.Investor Relations416-304-4443 or Toll free:
1-877-4-Quadra (1-877-478-2372)www.primerateplus.com
Canadian Banc (TSX:BK.PR.A)
Historical Stock Chart
From May 2024 to Jun 2024
Canadian Banc (TSX:BK.PR.A)
Historical Stock Chart
From Jun 2023 to Jun 2024