Issue: Non-Cumulative 5-Year Rate Reset Class B Preferred Shares Series 23
Size: 8-million shares (=$200-million) + greenshoe 3-million shares (=$75-million)
Dividends: 5.40% (=$1.35 annually); reset to 5-Year Canadas + 241bp each Reset Date. First dividend lovely and fat at $0.58808 payable November 25, 2009, assuming a June 19 close.
Reset Dates: February 25, 2015 and every five years thereafter.
Convertable: By holder every Reset Date to and from Series 24, which pay 3-month bills +241bp, reset quarterly.
Redeemable: Every Reset Date at $25.00. Series 24 is redeemable every Reset Date at $25 and at $25.50 at all other times.
Update: I am advised on good authority that the size of the deal has been increased to 14-million shares (=$350-million) with a 2-million share greenshoe (=$50-million).
Update, 2009-6-19: Press Release confirming the size increase.
Well James, you had speculated that this sort of offering would soon be the norm. It will be interesting to see how much the others (Big 6) are able to push the envelope, especially TD and RY with respect to initial rate and reset premium.
On June 8 I wondered if a bank could issue at 5.00%+230 … well … not BMO, at least not yet!