Industrial Alliance has announced:
the closing of its previously announced offering of 4,000,000 6% Non-Cumulative Class A Preferred Shares Series E (the “Series E Preferred Shares”) at a price of $25.00 per Series E Preferred Share, representing aggregate gross proceeds of $100 million.
The offering was underwritten, on a bought deal basis, by a syndicate of underwriters co-led by Scotia Capital Inc. and RBC Dominion Securities Inc. and which includes National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., TD Securities Inc., Desjardins Securities Inc., Casgrain & Company Limited, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Industrial Alliance Securities Inc. and Laurentian Bank Securities Inc. This offering was made under the terms of a prospectus supplement dated October 7, 2009 to the short form base shelf prospectus dated April 30, 2009. The prospectus supplement is available on the SEDAR website at www.sedar.com and on the Company’s website at www.inalco.com.
The Series E Preferred Shares yield 6.00% per annum, payable quarterly, as and when declared by the Board of Directors of the Company. The Series E Preferred Shares commence trading on the Toronto Stock Exchange today under the symbol IAG.PR.E. The net proceeds of the offering will be used for general corporate purposes.
The Series E Preferred Shares are not redeemable prior to December 31, 2014. Subject to regulatory approval, on or after December 31, 2014, Industrial Alliance may, on no less than 30 or more than 60 days’ notice, redeem the Series E Preferred Shares in whole or in part, at the Company’s option, by the payment in cash of $26.00 per Series E Preferred Share if redeemed prior to December 31, 2015, at $25.75 per Series E Preferred Share if redeemed on or after December 31, 2015 but prior to December 31, 2016, at $25.50 per Series E Preferred Share if redeemed on or after December 31, 2016 but prior to December 31, 2017, at $25.25 per Series E Preferred Share if redeemed on or after December 31, 2017 but prior to December 31, 2018 and at $25.00 per Series E Preferred Share if redeemed on or after December 31, 2018, in each case together with all declared and unpaid dividends up to but excluding the date fixed for redemption.
The issue traded 170,412 shares in a range of 24.00-69 (!) before closing at 24.26-34, 4×10.
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2039-10-15
Maturity Price : 24.07
Evaluated at bid price : 24.26
Bid-YTW : 6.22 %
The issue was announced on October 6 and has been hurt by the 1.8% decline in the PerpetualDiscount subindex 10/6 – 10/15, although that does not account for the entire loss.
The issue is tracked by HIMIPref™. It has been added to the PerpetualDiscount subindex.