PrefBlog

Canadian Utilities has announced:

it has entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets and BMO Capital Markets, and including TD Securities Inc. and Scotiabank. The underwriters have agreed to buy 6,000,000 4.90% Cumulative Redeemable Second Preferred Shares Series BB at a price of $25.00 per share for aggregate gross proceeds of $150 million.

The Series BB Preferred Shares will be issued to the public at a price of $25.00 per share and holders will be entitled to receive fixed cumulative preferential cash dividends, payable quarterly as and when declared by the Board of Directors of the Corporation at an annual rate of $1.225 per share, to yield 4.90% annually. On or after September 1, 2017, the Corporation may redeem the Series BB Preferred Shares in whole or in part from time to time, at $26.00 per share if redeemed during the 12 months commencing September 1, 2017, at $25.75 per share if redeemed during the 12 months commencing September 1, 2018, at $25.50 per share if redeemed during the 12 months commencing September 1, 2019, at $25.25 per share if redeemed during the 12 months commencing September 1, 2020, and at $25.00 per share if redeemed on or after September 1, 2021.

The offering is being made only in the provinces of Canada by means of a prospectus supplement and the closing date of the issue is expected to be on or about July 5, 2012.

Canadian Utilities Limited also announced today that it will redeem on July 19, 2012 all of its outstanding Cumulative Redeemable Second Preferred Shares Series W at a price of $25.00 per share plus accrued and unpaid dividends per share. The $150 million aggregate cost of redemption will be funded from the net proceeds of the Series BB Preferred Share offering and cash.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution.

The redemption announcement for CU.PR.A (Series W) got its own post.

This is rather an unusual situation, in that they announced a different series of 4.90% Straights last month. That new issue, CU.PR.D, settled today, and also got its own post. The call schedules are identical.

This entry was posted on Monday, June 18th, 2012 at 10:32 pm and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.