TORONTO, Jan. 25, 2023 (GLOBE NEWSWIRE) — Canadian Banc Corp. (the “Company”) is pleased to announce that it has completed its preferred stock marketing overnight BK and Class A Shares BK the company. Total gross proceeds from the offering are expected to be approximately $45.1 million.
The offering is being made by National Bank Financial Inc.
The sale period of the overnight offer has now ended.
The offering is expected to close on or about January 31, 2023 and is subject to certain closing conditions, including TSX approval.
The preferred shares will be priced at $10.00 per preferred share to yield a 7.95% yield and the class A shares will be priced at $13.75 per class A share with a Target return of 14.47% offered.
The closing price on the TSX of each of the Preferred Shares and Class A Shares on January 24, 2023 was $10.14 and $14.09, respectively.
The net proceeds of the Offering will be used by the Company to invest in a portfolio of six Canadian publicly traded 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 investment objectives of the company are:
preferred shares:
- provide holders with cumulative floating rate monthly cash dividends at an annual rate equal to the applicable Canadian federal funds rate plus 1.50% (annual minimum rate of 5.0% and maximum annual rate of 8.0%) based on the original issue price; and
- on or about the Termination Date, currently December 1, 2023 (subject to further 5-year renewals and renewed in the past) to pay holders the original issue price of $10 for those shares.
Class A Shares:
- to provide holders with regular monthly cash distributions currently targeted at the annualized rate of 15% based on the volume weighted average trading price of Class A Shares for the last three dealing days of the previous month; and
- on or about the termination date, currently…
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