Canadian Banc Corp. Announces Successful Overnight Offering
May 09 2018 - 8:43AM
Canadian Banc Corp. (the “Company’) is pleased to announce it has
completed the overnight marketing of up to 2,915,000 Preferred
Shares and up to 2,915,000 Class A Shares of the Company. Total
proceeds of the offering are expected to be approximately $68.1
million.
The offering is being 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 sales period of the overnight offering has
now ended.
The offering is expected to close on or about
May 23, 2018 and is subject to certain closing conditions including
approval by the TSX.
The Preferred Shares were offered at a price of
$10.00 per Preferred Share to yield 5% and the Class A Shares were
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 8, 2018 was $10.10
and $13.68, respectively.
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 Company will today file an amended and
restated preliminary short form prospectus, containing important
information relating to the Preferred Shares and Class A Shares,
with securities commissions or similar authorities in all provinces
of Canada. The amended and restated preliminary short form
prospectus is still subject to completion or amendment.
Copies of the amended and restated 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. Investors
should read the prospectus before making an investment
decision. There will not be any sale or any acceptance of an
offer to buy the securities until a receipt for the final
prospectus has been issued.
Investor Relations:1-877-478-2372Local:
416-304-4443
www.canadianbanc.cominfo@quadravest.com
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