New Issue: PWF 5.80% Straight

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:

PWF Comparables
As of Close 2009-9-30
Ticker Dividend Quote Bid-YTW
PWF.PR.E 1.375 23.70-00 5.86%
PWF.PR.F 1.3125 22.71-85 5.88%
PWF.PR.G 1.475 25.08-45 5.98%
PWF.PR.H 1.4375 24.76-93 5.90%
PWF.PR.I 1.50 25.16-23 6.06%
PWF.PR.K 1.2375 21.45-64 5.88%
PWF.PR.L 1.275 22.47-69 5.77%

4 Responses to “New Issue: PWF 5.80% Straight”

  1. GAndreone says:

    Looks like your feelings about GWO and PWF regarding pricing are correct!

  2. jiHymas says:

    As far as these deals are concerned, sure!

    Note to new readers: I had previously commented that GWO / PWF / POW issues tended to be priced very tight to the market, with little, no, or even negative new issue concession. That’s what sales commissions are for!

  3. […] new PWF 5.80% Straight starts trading tomorrow … that should be […]

  4. […] This 5.80% Straight was announced last week. […]

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