LB.PR.H Firm On Good Volume

Laurentian Bank of Canada has announced:

that it has closed its previously announced public offering, on a bought deal basis, of 5,000,000 Basel III-compliant Non-Cumulative Class A Preferred Shares, Series 13 (the “Preferred Shares Series 13”), at a price of $25.00 per share for gross proceeds of $125 million (the “Offering”).

The Offering was underwritten by a syndicate led by RBC Dominion Securities Inc., BMO Capital Markets and Laurentian Bank Securities Inc.

The Preferred Shares Series 13 will commence trading on the Toronto Stock Exchange today under the ticker symbol “LB.PR.H.”.

The Preferred Shares Series 13 were issued pursuant to a prospectus supplement dated March 27, 2014 to Laurentian Bank’s short form base shelf prospectus dated October 10, 2012.

LB.PR.H is a NVCC-compliant FixedReset, 4.30%+255, announced March 25; since it is NVCC-compliant, I have not imposed a Deemed Maturity onto the call schedule. This issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

DBRS finalized its rating at Pfd-3(low), one notch below other issues due to the uncertainty caused by NVCC.

The issue traded 697,638 shares today in a range of 24.91-99 before closing at 24.96-99, 125×12. Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2044-04-03
Maturity Price : 23.14
Evaluated at bid price : 24.96
Bid-YTW : 4.18 %

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