Canadian Banc Corp. Announces Overnight Offering
May 08 2018 - 2:28PM
Canadian Banc Corp. (the “Company’) is pleased to announce it has
filed a preliminary short form prospectus in each of the provinces
of Canada with respect to an offering of Preferred Shares and Class
A Shares of the Company. The offering will be co-led by
National Bank Financial Inc., CIBC World Markets Inc., Scotia
Capital Inc. and RBC Capital Markets, and will also include TD
Securities Inc., BMO Capital Markets, Canaccord Genuity Corp.,
Industrial Alliance Securities Inc., Echelon Wealth Partners, GMP
Securities L.P., Raymond James Ltd., Desjardins Securities Inc.,
Mackie Research Capital Corporation, and Manulife Securities
Incorporated.
The Preferred Shares will be offered at a price
of $10.00 per Preferred Share to yield 5% and the Class A Shares
will be offered at a price of $13.35 per Class A Share to yield
10%.
The closing price on the TSX of each of the
Preferred Shares and the Class A Shares on May 7, 2018 was $10.13
and $13.31, respectively.
Since inception of the Company, the aggregate
dividends declared on the Preferred Shares have been $6.81 per
share and the aggregate dividends declared on the Class A Shares
have been $13.63 per share, for a combined total of $20.44 per
unit. All distributions to date have been made in tax
advantaged eligible Canadian dividends or capital gains
dividends.
The net proceeds of the 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 |
The Company’s investment 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% (minimum annual rate of 5.0% and
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
$10 issue price 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;
and
- On the termination date to pay holders the original $15 issue
price of those shares.
The sales period of this overnight offering will
end at 9:00 a.m. EST on May 9, 2018. The offering is expected
to close on or about May 23, 2018 and is subject to certain closing
conditions including approval by the TSX.
A preliminary short form prospectus containing
important information relating to the Preferred Shares and the
Class A Shares has been filed with securities commissions or
similar authorities in all provinces of Canada. The
preliminary short form prospectus is still subject to completion or
amendment. Copies of the preliminary short form prospectus
may be obtained from your registered financial advisor using the
contact information for such advisor, or from representatives of
the underwriters listed above. There will not be any sale or
any acceptance of an offer to buy the Preferred Shares or the Class
A Shares until a receipt for the final short form prospectus has
been issued.
Investor Relations:1-877-478-2372Local:
416-304-4443
www.canadianbanc.cominfo@quadravest.com
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