PrefBlog

Laurentian Bank has announced:

that it has entered into an agreement with a syndicate of underwriters led by RBC Dominion Securities Inc., CIBC World Markets Inc. and Laurentian Bank Securities Inc. (collectively, the “Underwriters”), under which the Underwriters have agreed to buy on a bought deal basis an aggregate of 4,000,000 Non-Cumulative Class A Preferred Shares, Series 11 (the “Preferred Shares Series 11”), at a price of $25.00 per Preferred Share Series 11 for gross proceeds of approximately $100 million (the “Offering”). The Preferred Shares Series 11 will be offered for sale to the public in each of the provinces of Canada pursuant to a prospectus supplement to Laurentian’s short form base shelf prospectus dated October 10, 2012, which supplement will be filed with Canadian securities regulatory authorities in all Canadian provinces.

Holders of Preferred Shares Series 11 will be entitled to receive non-cumulative preferential fixed quarterly dividends for the initial period ending on, but excluding, December 15, 2017, as and when declared by the board of directors of the Bank, payable in the amount of $0.25 per Preferred Share Series 11, to yield 4 per cent annually.

Thereafter, the dividend rate will reset every five years to be equal to the 5-Year Government of Canada Bond Yield plus 2.6 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares Series 11 into an equal number of Non-Cumulative Class A Preferred Shares, Series 12 (the “Preferred Shares Series 12”) on December 15, 2017 and on December 15 every five year thereafter. Holders of the Preferred Shares Series 12 will be entitled to receive non-cumulative preferential floating rate quarterly dividends, as and when declared by the board of directors of the Bank, equal to the then 3-month Government of Canada Treasury Bill yield plus 2.6 per cent.

The Offering is expected to close on or about October 18, 2012 and is subject to Laurentian receiving all necessary regulatory approvals. The net proceeds of this Offering will be used for general corporate purposes.

This entry was posted on Thursday, October 11th, 2012 at 1:10 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.