National Bank of Canada has announced:
that it has closed its domestic public offering of non-cumulative 5-year rate reset first preferred shares series 42 (non-viability contingent capital (NVCC)) (the “Series 42 Preferred Shares”). National Bank issued 12 million Series 42 Preferred Shares at a price of $25.00 per share to raise gross proceeds of $300 million.
The offering was underwritten by a syndicate led by National Bank Financial Inc.
The Series 42 Preferred Shares will commence trading on the Toronto Stock Exchange today under the ticker symbol NA.PR.G.
The Series 42 Preferred Shares were issued under a prospectus supplement dated June 4, 2018 to National Bank’s short form base shelf prospectus dated November 21, 2016.
NA.PR.G is a FixedReset, 4.95%+277, NVCC compliant, announced 2018-05-31. It will be tracked by HIMIPref™ and has been assigned to the FixedResets subindex.
The issue traded 711,342 shares today in a range of 24.85-96 before closing at 24.94-95. The slight discount to par isn’t bad, given that TXPR is down about 0.25% from the close immediately prior to the announcement date. Vital statistics are:
| NA.PR.G | FixedReset | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2048-06-11 Maturity Price : 23.12 Evaluated at bid price : 24.94 Bid-YTW : 4.85 % |
The new issue is ridiculously expensive according to Implied Volatility Analysis:
Click for Big
According to this analysis, the fair value of the new issue on June 11 is 23.86.