FBS.PR.B Redeemed; FBS.PR.C Issued

5Banc Split Inc, operated by TD Securities, has announced:

that it has completed an offering of 2,580,135 Class C preferred shares, series 1 (the “Class C Preferred Shares”) at a price of $10.00 per Class C Preferred Share raising gross proceeds of approximate $25.8 million. The Class C Preferred Shares were offered on a best efforts basis by a syndicate of agents led by TD Securities Inc. which included Scotia Capital Inc., BMO Capital Markets and National Bank Financial Inc.

The Company holds a portfolio of publicly listed common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank in order to provide holders of the Class C Preferred Shares with fixed cumulative preferential dividends and to provide holders of its Class B capital shares (the “Capital Shares”) with a leveraged investment and excess dividends, if any, subject to the prior rights of holders of Class C Preferred Shares and after payment of the expenses of the Company and dividends payable on the Class C Preferred Shares.

The Class C Preferred Shares and the Capital Shares are listed and posted for trading on the Toronto Stock Exchange under the symbols FBS.PR.C and FBS.B, respectively. The Class C Preferred Shares are rated Pfd-2 (low) by DBRS Limited. The Class B preferred shares of the Company have been redeemed today in accordance with their terms.

The prospectus for FBS.PR.C is posted on the fund’s site.

FBS.PR.B was last mentioned on PrefBlog when the refunding was announced.

FBS.PR.C will be tracked by HIMIPref™ and will be eligible for the SplitShare index, but is expected to be relegated to the Scraps index on volume concerns.

Update: DBRS rates FBS.PR.C at Pfd-2(low).

Update: Vital statistics for FBS.PR.C are:

Maturity Type : Call
Maturity Date : 2012-12-15
Maturity Price : 10.00
Evaluated at bid price : 10.16
Bid-YTW : 3.12 %

3 Responses to “FBS.PR.B Redeemed; FBS.PR.C Issued”

  1. drap1 says:

    Hi James, are you aware of any new info regarding mfc and slf prefs? maybe with respect to the new qualifying capital rules?…mfc and slf prefs have been getting smoked…gwo’s been pretty solid though…maybe just sellers and bad liquidity like a couple of months ago?

  2. jiHymas says:

    SLF is on CreditWatch-Negative by S&P, but I’m not aware of anything else that’s new.

    Tax-Loss selling?

  3. […] FBS.PR.C was last mentioned on PrefBlog when it was issued. […]

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