PrefBlog

Hard on the heels of the GWO 5.65% Straight announced last week comes an announcement from Power Financial Corporation:

Power Financial Corporation announced today that it has agreed to issue 6,000,000 Non-Cumulative First Preferred Shares, Series O (the “Series O Shares”) on a bought deal basis, for gross proceeds of $150 million. The Series O Shares will be priced at $25.00 per share and will carry an annual dividend yield of 5.80%. Closing is expected on or about October 9, 2009. The issue will be underwritten by a syndicate of underwriters led by BMO Capital Markets, Scotia Capital Inc. and RBC Capital Markets.

Power Financial has also granted the underwriters an option to purchase an additional 4,000,000 Series O Shares at the same offering price. Should the underwriters’ option be exercised fully, the total gross proceeds of the Series O Share offering will be $250 million.

Proceeds from the issue will be used to supplement the Corporation’s financial resources and for general corporate purposes.

The first dividend will be $0.45288 payable 2010-1-31 based on closing 2009-10-9

The shares are redeemable at 26.00 commencing 2014-10-31; the redemption price declines by $0.25 annually until 2018-10-31; redeemable at 25.00 thereafter.

Update: The issue may be compared with extant PWF issues outstanding:

This entry was posted on Thursday, October 1st, 2009 at 11:20 am and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.