Power Financial Corp. has announced:
the successful completion and closing of an offering of 11,200,000 4.40% Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series P (the “Series P Shares”) priced at $25.00 per share to raise gross proceeds of $280 million.
The issue was bought by an underwriting group co-led by BMO Capital Markets, RBC Capital Markets and Scotia Capital Inc. Following the successful sale of the initially announced 8,000,000 Series P Shares, the underwriters exercised an option to purchase an additional 3,200,000 Series P Shares.
The Series P Shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “PWF.PR.P”. Proceeds from the issue will be used to supplement Power Financial’s financial resources and for general corporate purposes.
PWF.PR.P is a FixedReset, 4.40%+160, announced June 17. It traded 563,942 shares today in a range of 24.85-02 before closing at 25.00-14.
The greenshoe was for 4-million shares, so 80% was exercised.
Given the Power Group’s reputation for extremely tight pricing of their new preferred issues, I can bet the CFO has already received a sternly worded memo about leaving too much money on the table!
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2040-06-29
Maturity Price : 23.12
Evaluated at bid price : 25.00
Bid-YTW : 4.06 %
PWF.PR.P is tracked by HIMIPref™ and has been assigned to the FixedReset index.