New Issue: POW Straight Perpetual, 5.65%

Power Corporation of Canada has announced:

that it has agreed to issue 6,000,000 Non-Cumulative First Preferred Shares, Series I in the capital of the Corporation (the “Series I Shares”) on a bought deal basis, for gross proceeds of $150 million. The Series I Shares will be priced at $25.00 per share (the “Issue Price”) and will carry an annual dividend yield of 5.65%. Closing is expected on or about November 20, 2025. The issue will be underwritten by a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank.

Power Corporation has granted the underwriters an option, exercisable up to 48 hours prior to closing, to purchase up to an additional 2,000,000 Preferred Shares ($50 million) at the Issue Price. Should the underwriters’ option be exercised fully, the total gross proceeds of the offering will be $200 million.

The net proceeds of this offering will be used by Power Corporation for general corporate purposes.

The Series I Shares will be offered in each of the provinces and territories of Canada by way of a prospectus supplement (the “Prospectus Supplement”) to the short form base shelf prospectus (the “Shelf Prospectus”) of the Company dated November 19, 2024.

Access to the Prospectus Supplement, the Shelf Prospectus and any amendments to the documents is provided in accordance with securities legislation relating to procedures for providing access to a prospectus supplement, a base shelf prospectus and any amendment. The Shelf Prospectus is, and the Prospectus Supplement will be (within two business days of the date hereof), accessible on SEDAR+ at www.sedarplus.ca. An electronic or paper copy of the Prospectus Supplement, the Shelf Prospectus and any amendment to the documents may be obtained, without charge, from any of the joint bookrunners by contacting BMO Capital Markets by email at torbramwarehouse@datagroup.ca, RBC Capital Markets by email at Distribution.RBCDS@rbccm.com, and Scotiabank by email at equityprospectus@scotiabank.com, and by providing the contact with an email address or address, as applicable. The Shelf Prospectus and Prospectus Supplement contain important, detailed information about Power Corporation and the proposed offering of Series I Shares. Prospective investors should read the Shelf Prospectus and Prospectus Supplement (when filed) before making an investment decision.

The press release is on SEDARPlus, but not the Prospectus Supplement. The existence or lack of a nice long redemption lock-out period is of interest! Also, I need to know the precise amount of the first dividend.

I am gratified to see that the new issue is fairly priced according to Implied Volatility theory – and that’s without accounting for the redemption lock-out, assuming it exists:

The annual dividend rate is 1.4125.

Update, 2025-11-20: The prospectus is now on SEDAR+, but of course I am not allowed to link to this public document directly because the staff at the Canadian Securities Administrators want to preserve profits for their friends and future employers at the Toronto Stock Exchange. You can find it by searching for “Power Corporation of Canada / Power Corporation du Canada (000001575)
Prospectus (non pricing) supplement (other than ATM) – English.pdf
17 Nov 2025 12:29 ESTNovember 17 2025 at 12:29:25 Eastern Standard Time
Québec
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It’s a long first dividend, payable 2026-4-15, for $0.565. The par call is 2035-1-15.