New Issue: PWF 5.50% Straight

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.

2 Responses to “New Issue: PWF 5.50% Straight”

  1. lafontaine says:

    next they will annonce the redemption of ( due 30-04-2012 ) 6% and 5.9% ….

  2. […] PWF.PR.R is a 5.50% Straight Perpetual announced February 13. […]

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