MIC.PR.A Strong On Excellent Volume

Sagen MI Canada Inc. has announced:

the closing of its previously announced bought deal offering (the “Offering”) of 4,000,000 non-cumulative Class A Preferred Shares, Series 1 (the “Series 1 Shares”). The Offering was underwritten by a syndicate of underwriters led by BMO Capital Markets, CIBC World Markets, National Bank Financial, RBC Capital Markets, Scotia Capital and TD Securities, and resulted in gross proceeds of C$100 million.

Each Series 1 Share entitles the holder thereof to fixed, non-cumulative dividends, if, as and when declared by the board of directors of the Company, with an annual dividend yield of 5.40%. Such dividends, if, declared, will be paid on the last day of March, June, September and December in each year at a rate equal to $0.3375 per Series 1 Share. The initial dividend, if declared, will be paid on June 30, 2021 and will be $0.48822 per Series 1 Share. The Series 1 Shares will commence trading today on the Toronto Stock Exchange under the symbol MIC.PR.A.

The Company intends to use the net proceeds of the Offering to strengthen the Company’s capital base, for distributions to shareholders (subject to the completion of the previously announced plan of arrangement (the “Arrangement”) pursuant to which Brookfield Business Partners L.P., together with certain of its affiliates and institutional partners (“Brookfield”), will acquire all of the outstanding common shares of the Company not already owned by Brookfield), and/or for general corporate purposes.

Following the closing of the Arrangement, in order to maintain in force an exemption order from the public voting requirement currently in section 411 of the Insurance Companies Act (Canada) that has been granted to Genworth Financial Mortgage Insurance Company Canada (a wholly-owned subsidiary of the Company doing business as Sagen™), and subject to certain other limitations and conditions, the Class A Preferred Shares, as a class, will carry adjustable voting rights to ensure that, at any given time, 35% of the voting rights in the Company will be held by persons who, among other things, do not hold 20% or more of any class of voting shares of the Company.

MIC.PR.A is a Straight Perpetual, 5.40%, that was announced 2021-2-8.

The issue traded 649,600 shares today in a range of 25.08-48. It has been assigned to the PerpetualPremium subindex. Vital statistics are:

MIC.PR.A Perpetual-Premium YTW SCENARIO
Maturity Type : Call
Maturity Date : 2030-03-31
Maturity Price : 25.00
Evaluated at bid price : 25.45
Bid-YTW : 5.19 %

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