PrefBlog

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.

Canadian Utilities Limited has announced:

it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and RBC Capital Markets, and including TD Securities Inc., Scotiabank, CIBC Capital Markets, National Bank Financial Inc. and ATB Capital Markets. The underwriters have agreed to buy 7,000,000 5.60% Cumulative Redeemable Second Preferred Shares Series JJ at a price of $25.00 per share for aggregate gross proceeds of $175,000,000. The proceeds will be used for capital expenditures and for other general corporate purposes.

Canadian Utilities has granted the Underwriters an option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the offering, to purchase, at the offering price, an additional 1,050,000 Series JJ Preferred Shares, to cover over-allotments, if any. Should the over-allotment option be fully exercised, the total gross proceeds of the Series JJ Preferred Share offering will be $201,250,000.

The Series JJ Preferred Shares will be issued to the public at a price of $25.00 per share and holders will be entitled to receive fixed cumulative preferential cash dividends, payable quarterly, as and when declared by the Board of Directors of the Corporation, at an annual rate of $1.40 per share, to yield 5.60% annually. On or after March 1, 2031, the Corporation may redeem the Series JJ Preferred Shares in whole or in part from time to time, at $26.00 per share if redeemed during the 12 months commencing March 1, 2031, at $25.75 per share if redeemed during the 12 months commencing March 1, 2032, at $25.50 per share if redeemed during the 12 months commencing March 1, 2033, at $25.25 per share if redeemed during the 12 months commencing March 1, 2034, and at $25.00 per share if redeemed on or after March 1, 2035, in each case together with all accrued and unpaid dividends up to, but excluding, the date fixed for redemption.

The offering is being made in all of the provinces of Canada by means of a short form prospectus. The closing date of the offering is expected to be on or about November 27, 2025.

The issue looks fairly priced according to Implied Volatility Theory:

Thanks to Assiduous Reader skeptical111 for bringing this to my attention!

Update 2025-11-27 The prospectus is available on SEDAR+, but I am not permitted to link to this public document because this might hurt profits of the regulators’ future employers. Search for:
Canadian Utilities Limited / Canadian Utilities Limited (000005556)
Final short form prospectus – English.pdf
25 Nov 2025 13:33 ESTNovember 25 2025 at 13:33:59 Eastern Standard Time
Alberta
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Redemption provisions are:

The Series JJ Preferred Shares will not be redeemable prior to March 1, 2031. On or after March 1, 2031, the Corporation may, on not less than 30 nor more than 60 days’ notice, redeem the Series JJ Preferred Shares in whole or in part, at the Corporation’s option, by the payment in cash of $26.00 per Series JJ Preferred Share if redeemed on or after March 1, 2031 and prior to March 1, 2032, at $25.75 per Series JJ Preferred Share if redeemed on or after March 1, 2032 and prior to March 1, 2033, at $25.50 per Series JJ Preferred Share if redeemed on or after March 1, 2033 and prior to March 1, 2034, at $25.25 per Series JJ Preferred Share if redeemed on or after March 1, 2034 and prior to March 1, 2035 and at $25.00 per Series JJ Preferred Share if redeemed on or after March 1, 2035, in each case together with all accrued and unpaid dividends up to but excluding the date fixed for redemption. See “Details of the Offering”.

and:

Assuming an issue date of November 27, 2025 the initial dividend, if declared, will be payable on March 1, 2026 and will be $0.36055 per Series JJ Preferred Share.

Intact Financial Corporation has announced:

that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and National Bank Capital Markets pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 6,000,000 Non-Cumulative Class A Shares, Series 13 (the “Series 13 Shares”) from Intact for sale to the public at a price of $25.00 per Series 13 Share (the “Offering Price”), representing aggregate gross proceeds of $150 million (the “Offering”).

The Series 13 Shares will yield 5.50% per annum, payable quarterly, as and when declared by the Board of Directors of the Company. The Series 13 Shares will not be redeemable prior to December 31, 2030. On and after December 31, 2030, Intact may, on not less than 30 nor more than 60 days’ notice, redeem for cash the Series 13 Shares in whole or in part, at Intact’s option, at $26.00 per Series 13 Share if redeemed on or after December 31, 2030 and prior to December 31, 2031, $25.75 per Series 13 Share if redeemed on or after December 31, 2031 and prior to December 31, 2032, $25.50 per Series 13 Share if redeemed on or after December 31, 2032 and prior to December 31, 2033, $25.25 per Series 13 Share if redeemed on or after December 31, 2033 and prior to December 31, 2034 and $25.00 per Series 13 Share if redeemed on or after December 31, 2034, in each case together with all declared and unpaid dividends on such Series 13 Shares up to but excluding the date of redemption.

The Offering is expected to close on November 12, 2025. The net proceeds are expected to be used by Intact for general corporate purposes.

The issue appears to be fairly priced in accordance with Implied Volatility Theory [IVT], with a Theoretical Price of 25.05. However, IVT makes no allowance for the redemption lockout period, so I’d say this issue is cheap relative to other IFC Straights.

Thanks to Assiduous Readers niagara and newbiepref for bringing this to my attention!

Update, 2025-12-5: I am not permitted to link to the prospectus for this issue, as the Canadian Securities Administrators forbid such a use of this information on SEDAR+. So you’ll have to do a search for: “Intact Financial Corporation / Intact Corporation financière (000021370) Prospectus (non pricing) supplement (other than ATM) – English.pdf 07 Nov 2025 16:28 ESTNovember 07 2025 at 16:28:25 Eastern Standard Time Ontario 277 KB”

The initial dividend covering the period from issuance to March 31, 2026, if declared, will be payable on March 31, 2026 and will be $0.5236 per Series 13 Preferred Share, based on an anticipated closing date of November 12, 2025.
…
Share if redeemed prior to December 31, 2031, of $25.75 per Series 13 Preferred Share if redeemed on or after December 31, 2031 but prior to December 31, 2032, of $25.50 per Series 13 Preferred Share if redeemed on or after December 31, 2032 but prior to December 31, 2033, of $25.25 per Series 13 Preferred Share if redeemed on or after December 31, 2033 but prior to December 31, 2034, and of $25.00 per Series 13 Preferred Share if redeemed on or after December 31, 2034, in each case together with an amount equal to all declared and unpaid dividends thereon up to but excluding the date fixed for redemption (less any tax required to be deducted and withheld by IFC)