E-L Financial Corporation Limited has announced:
the completion of its previously-announced sale to a syndicate of underwriters, co-led by Scotia Capital Inc. and TD Securities Inc., of 4,000,000 Non-Cumulative Redeemable First Preference Shares, Series 3 for sale to the public at a price of $25.00 per share and paying fixed non-cumulative quarterly dividends that will yield 5.50% per annum. The gross proceeds of $100,000,000, less the expenses of the offering, will be added to the Corporation’s capital base to supplement the Corporation’s financial resources and used for general corporate purposes. The First Preference Shares, Series 3 will be posted for trading on the Toronto Stock Exchange (“TSX”) under the symbol ELF.PR.H.
The First Preference Shares, Series 3 will rank in priority to the common shares and the Series A Preference Shares of the Corporation, with respect to the payment of dividends and with respect to the distribution of assets on the dissolution, liquidation or winding up of the Corporation. On and after April 17, 2017, the Corporation may, subject to TSX approval, convert all or any part of the outstanding First Preference Shares, Series 3 into freely tradeable common shares of the Corporation. The First Preference Shares, Series 3 are also redeemable at the option of the Corporation on and after April 17, 2017.
ELF.PR.H is a Straight Perpetual, 5.50%, announced March 9. It will be assigned to the PerpetualDiscounts index – although issued by an Insurance Holding Company, it is exchangeable for common at the option of the company, a feature which CIBC has used to achieve NVCC status for three of its issues.
ELF.PR.H traded 426,481 shares today in a range of 24.94-09 before closing at 24.98-00, 10×30. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2042-04-02
Maturity Price : 24.59
Evaluated at bid price : 24.98
Bid-YTW : 5.52 %