Canaccord Financial has announced:
the completion of its previously announced offering of 4,000,000 Cumulative 5-Year Rate Reset First Preferred Shares, Series C ( the “Series C Preferred Shares”) at a purchase price of CAD$25.00 per Series C Preferred Share, for aggregate gross proceeds of CAD$100 million. The Series C Preferred Shares are expected to commence trading on the Toronto Stock Exchange on April 10, 2012 under the trading symbol “CF.PR.C”.
The offering was underwritten on a bought deal basis by a syndicate of underwriters led by CIBC, Canaccord Genuity Corp. and RBC Capital Markets, and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Cormark Securities Inc., Desjardins Securities Inc., Dundee Securities Ltd., 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 C Preferred Shares which, if exercised in full, would increase the gross proceeds of the offering to CAD$115 million.
The net proceeds of the offering will be used to reduce outstanding borrowings under the CAD$150 million senior secured credit facility (the “Acquisition Credit Facility”) entered into by the Company, as borrower, and provided by Canadian Imperial Bank of Commerce, as lender.
The Acquisition Credit Facility was entered in order to fund a portion of the cash consideration for the Company’s previously announced acquisition of Collins Stewart Hawkpoint plc, which closed on March 21, 2012.
CF.PR.C is a FixedReset, 5.75%+403, announced March 22. The issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.
CF.PR.C traded a derisory 33,890 shares in a range of 23.50-48, before closing at 23.40-55, 2×4. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2042-04-10
Maturity Price : 22.48
Evaluated at bid price : 23.40
Bid-YTW : 6.04 %