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SERVICES OR FOR DISSEMINATION IN THE
MONTREAL, April 14, 2021 /CNW Telbec/ - National Bank
of Canada ("National Bank") today
announced that it has entered into an agreement with a group of
agents led by National Bank Financial Inc. for the issuance of
$500 million of Limited Recourse Capital Notes, Series 2
(Non-Viability Contingent Capital (NVCC)) (Subordinated
Indebtedness) (the "Notes").
The Notes will bear interest at a rate of 4.05% annually,
payable semi-annually, for the initial period ending on but
excluding August 15, 2026.
Thereafter, the interest rate on the Notes will reset every five
years at a rate equal to the prevailing 5-year Government of Canada
Yield plus 3.045%. The Notes will mature on August 15, 2081.
Concurrently with the issuance of the Notes, National Bank will
issue Non-Cumulative 5-Year Fixed Rate Reset First Preferred
Shares, Series 45 (Non-Viability Contingent Capital (NVCC))
(the "Series 45 Preferred Shares") to be held by
Computershare Trust Company of Canada as trustee for NBC LRCN Limited
Recourse Trust (the "Limited Recourse Trust"). In case of
non-payment of interest on or principal of the Notes when due, the
recourse of each Note holder will be limited to that holder's
proportionate share of the Limited Recourse Trust's assets in
respect of the Notes, which will consist of Series 45 Preferred
Shares except in limited circumstances.
National Bank may redeem the Notes during the period from
July 15 to and including August
15, commencing in 2026 and every five years thereafter, only upon
the redemption by National Bank of the Series 45 Preferred Shares
held in the Limited Recourse Trust, in accordance with the terms of
such shares and with the prior written approval of the
Superintendent of Financial Institutions (Canada), in whole on not less than 15 nor more
than 60 days' prior notice.
The net proceeds from the sale of the Notes will be added to
National Bank's general funds and will be utilized for general
banking purposes. It is expected that closing will take place
on April 21, 2021. National Bank
intends to file in Canada a
prospectus supplement to its August 17, 2020 base shelf
prospectus in respect of this issue.
The Notes have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, or under any state
securities laws, and may not be offered, sold, directly or
indirectly, or delivered within the
United States of America and its territories and possessions
or to, or for the account or benefit of, United States persons except in certain
transactions exempt from the registration requirements of such Act.
This press release shall not constitute an offer to sell or a
solicitation to buy securities in the
Caution Regarding Forward-Looking Statements
This press release includes certain forward-looking statements.
These statements are inherently subject to significant risks,
uncertainties and changes in circumstances, many of which are
beyond the control of National Bank. Except as required by law,
National Bank does not undertake to update any forward-looking
statements, whether written or oral, that may be made from time to
time, by it or on its behalf. The forward-looking information
contained in this press release is presented for the purpose of
interpreting the information contained herein and may not be
appropriate for other purposes.
About National Bank of Canada
With $344 billion in
assets as at January 31, 2021,
National Bank of Canada, together
with its subsidiaries, forms one of Canada's leading integrated financial groups.
National Bank has more than 26,000 employees in knowledge-intensive
positions and has been recognized numerous times as a top employer
and for its commitment to diversity. Its securities are listed on
the Toronto Stock Exchange (TSX: NA). Follow National Bank's
activities at nbc.ca or via social media such as Facebook, LinkedIn
SOURCE National Bank of Canada