PWF.PR.O Dives on Opening; Still Expensive

Power Financial Corporation has announced:

the successful completion and closing of an offering of 6,000,000 Non-Cumulative First Preferred Shares, Series O (the “Series O Shares”), priced at $25.00 per share to raise gross proceeds of $150 million.

The issue was bought by an underwriting group led by BMO Capital Markets, Scotia Capital Inc. and RBC Capital Markets.

The Series O Shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “PWF.PR.O”. Proceeds from the issue will be used to supplement Power Financial’s financial resources and for general corporate purposes.

This 5.80% Straight was announced last week.

PWF.PR.O traded 149,780 shares in a range of 25.35-50 before closing at 24.35-39.

Vital statistics are:

PWF.PR.O Perpetual-Discount YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2039-10-09
Maturity Price : 24.15
Evaluated at bid price : 24.35
Bid-YTW : 5.99 %

PWF.PR.O is tracked by HIMIPref™. It has been assigned to the PerpetualDiscount index.

It’s interesting to look at the comparators:

PWF.PR.O and its Comparators
Ticker Dividend Quote
PWF.PR.K 1.2375 20.43-62 6.08-01%
PWF.PR.L 1.275 20.74-99 6.17-08%
PWF.PR.F 1.3125 21.60-68 6.10-07%
PWF.PR.E 1.375 23.01-48 5.96-81%
PWF.PR.H 1.4375 23.50-77 6.12-04%
PWF.PR.O 1.45 24.35-39 5.99-98%
PWF.PR.G 1.475 24.30-40 6.07-02%
PWF.PR.I 1.50 24.80-85 6.05-04%

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