PWF.PR.M Closes with Greenshoe!

Power Financial has announced:

the successful completion and closing of an offering of 7,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series M (the “Series M Shares”), priced at $25.00 per share to raise gross proceeds of $175 million.

The issue was bought by an underwriting group led by BMO Capital Markets and Scotia Capital Inc. Following the successful sale of the initially announced 6,000,000 Series M Shares, the underwriters exercised an option to purchase an additional 1,000,000 Series M Shares.

The Series M Shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “PWF.PR.M”. Proceeds from the issue will be used to supplement Power Financial’s financial resources and for general corporate purposes.

The greenshoe noted in the initial announcement was therefore 50% subscribed.

Sadly for the buyers, however, the issue is trading more as a perpetual than a retractible. closing at 23.83-98, 10×19, after trading 125,030 shares in a range of 23.75-20. The yield until the limitMaturity is 6.18%, while the yield to the first call is 7.13%.

The issue has been added to the FixedReset Index.

I have uploaded an evaluation of the FixedReset subIndex.

3 Responses to “PWF.PR.M Closes with Greenshoe!”

  1. Benjy says:

    Is there a speedy way of finding the year 5 reset premiums for the table of the FixedReset subindex without going to each prospectus ?

  2. jiHymas says:

    PrefInfo records the information, but is only updated more-or-less monthly.

    Otherwise, try this blog! You can search by ticker … I reviewed the sector when I initiated the FixedReset subindex … and I included a similar table in the November edition of PrefLetter.

  3. […] Desjardins crossed 38,700 at 23.80; Scotia bought 25,800 from Anonymous at 24.00. Recent new issue. […]

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