NA.PR.C Soft-ish On Excellent Volume

National Bank of Canada has announced:

that it has closed its domestic public offering of non-cumulative 5-year rate reset first preferred shares series 38 (non-viability contingent capital (NVCC)) (the “Series 38 Preferred Shares”). National Bank issued 16 million Series 38 Preferred Shares at a price of $25.00 per share to raise gross proceeds of $400 million.

The offering was underwritten by a syndicate led by National Bank Financial Inc.

The Series 38 Preferred Shares will commence trading on the Toronto Stock Exchange today under the ticker symbol NA.PR.C.

The Series 38 Preferred Shares were issued under a prospectus supplement dated June 5, 2017 to National Bank’s short form base shelf prospectus dated November 21, 2016.

NA.PR.C is a FixedReset, 4.45%+343, NVCC-compliant announced 2017-6-1. It will be tracked by HIMIPref™ and has been assigned to the FixedResets subindex.

The issue traded 1,359,922 shares today in a range of 24.78-92 before closing at 24.90-93. Vital statistics are:

NA.PR.C FixedReset YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-06-13
Maturity Price : 23.10
Evaluated at bid price : 24.90
Bid-YTW : 4.33 %

Implied Volatility analysis for FixedResets suggests that this issue continues to be expensive:

impvol_na_170613
Click for Big

The theoretical price of the new issue according to this model is now 24.58, up from 24.25 on announcement day.

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