PrefBlog

Canaccord Financial Inc has announced:

the completion of its previously announced offering of 4,000,000 Cumulative 5-Year Rate Reset First Preferred Shares, Series A ( the “Series A Preferred Shares”) at a purchase price of $25.00 per Series A Preferred Share, for aggregate gross proceeds of $100 million. The Series A Preferred Shares are expected to commence trading on the Toronto Stock Exchange on June 23, 2011 under the trading symbol “CF.PR.A”.

The offering was underwritten on a bought deal basis by a syndicate of underwriters co-led by CIBC World Markets Inc. and Canaccord Genuity Corp. that included BMO Nesbitt Burns Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Cormark Securities Inc., Desjardins Securities Inc., Dundee Securities Ltd., Haywood Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.

Canaccord has granted the underwriters an over-allotment option, exercisable, in whole or in part, for a period of 30 days following today’s closing, to purchase up to an additional 600,000 Series A Preferred Shares which, if exercised in full, would increase the gross proceeds of the offering to $115 million.

Canaccord intends to use the net proceeds from the offering for general corporate purposes and may use all or a portion of such net proceeds with a view to growing or expanding its businesses.

CF.PR.A is a 5.50%+321 FixedReset announced June 6. CF.PR.A traded 187,001 shares today in a range of 24.75-98 before closing at 24.88-90, 2×12.

Vital statistics are:

CF.PR.A is tracked by HIMIPref™. It is assigned to the Scraps index on credit concerns.

Update, 2011-7-7:Greenshoe exercised:

Canaccord Financial Inc. (“Canaccord”, TSX: CF, AIM: CF.) announced today that it has closed the over-allotment option granted to the underwriters in connection with Canaccord’s bought deal public offering of Cumulative 5-Year Rate Reset First Preferred Shares, Series A (the “Series A Preferred Shares”), which closed on June 23, 2011. As a result of the exercise of the over-allotment option, Canaccord sold an additional 540,000 Series A Preferred Shares at a purchase price of $25.00 per Series A Preferred Share for additional gross proceeds of $13,500,000. In total, Canaccord has issued 4,540,000 Series A Preferred Shares for aggregate gross proceeds of $113,500,000. The Series A Preferred Shares trade on the Toronto Stock Exchange under the trading symbol “CF.PR.A”.

Canaccord intends to use the net proceeds from the offering for general corporate purposes and may use all or a portion of such net proceeds with a view to growing or expanding its businesses.

It will be most interesting to see how they choose between growing or expanding their business!

This entry was posted on Thursday, June 23rd, 2011 at 8:16 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.