New Issue: CU 4.50% Straight

Canadian Utilities Limited has announced:

it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and RBC Capital Markets, and including TD Securities Inc. and Scotiabank. The underwriters have agreed to buy 6,000,000 4.50% Cumulative Redeemable Second Preferred Shares Series CC at a price of $25.00 per share for aggregate gross proceeds of $150,000,000. The proceeds will be used for capital expenditures, to repay indebtedness and for other general corporate purposes.

Canadian Utilities Limited has granted the underwriters an option to purchase at the offering price an additional
2,000,000 Series CC Preferred Shares exercisable in whole or in part at any time up to 7:00 AM (Calgary time) on the date that is two business days prior to closing. Should the option be fully exercised, the total gross proceeds of the Series CC Preferred Share offering will be $200,000,000.

The Series CC 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 $1.125 per share, to yield 4.50% annually. On or after June 1, 2018, the Corporation may redeem the Series CC Preferred Shares in whole or in part from time to time, at $26.00 per share if redeemed during the 12 months commencing June 1, 2018, at $25.75 per share if redeemed during the 12 months commencing June 1, 2019, at $25.50 per share if redeemed during the 12 months commencing June 1, 2020, at $25.25 per share if redeemed during the 12 months commencing June 1, 2021, and at $25.00 per share if redeemed on or after June 1, 2022.

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 March 19, 2013.

This joins their two existing Straights:

  • CU.PR.D, 4.9%, quoted at 26.41-42 to yield 4.14-13%
  • CU.PR.E, 4.9%, quoted at 26.35-44 to yield 4.17-12%

Update 2013-3-10: Upsized to $175-million.

2 Responses to “New Issue: CU 4.50% Straight”

  1. […] comprised almost entirely of FixedReset winners. Volume was extremely high, helped along by the CU 4.50% Straight new issue and the CPX 4.50%+315 FixedReset new issue – and, doubtless, continued shuffling after the […]

  2. […] is a Straight Perpetual, 4.50%, announced March 5. It will be tracked by HIMIPref™ and has been assigned to the PerpetualDiscounts […]

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