PrefBlog

Power Financial Corporation has announced:

that it has agreed to issue 6,000,000 Non-Cumulative First Preferred Shares, Series R (the “Series R Shares”) on a bought deal basis, for gross proceeds of $150 million. The Series R Shares will be priced at $25.00 per share and will carry an annual dividend yield of 5.50%. Closing is expected on or about February 23, 2012. The issue will be underwritten by a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank.

Power Financial has also granted the underwriters an option to purchase an additional 2,000,000 Series R Shares at the same offering price. Should the underwriters’ option be exercised fully, the total gross proceeds of the Series R Share offering will be $200 million.

Proceeds from the issue will be used to supplement the Corporation’s financial resources and for general corporate purposes.

Update: Have heard that this has been upsized to $250-million.

Update: Confirmed.

This entry was posted on Monday, February 13th, 2012 at 6:12 pm and is filed under New Issues. 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.