{"id":1995,"date":"2008-03-31T09:57:30","date_gmt":"2008-03-31T13:57:30","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1995"},"modified":"2008-03-31T09:57:30","modified_gmt":"2008-03-31T13:57:30","slug":"new-issue-na-600-perps","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1995","title":{"rendered":"New Issue : NA 6.00% Perps"},"content":{"rendered":"

National Bank has announced<\/a>:<\/p>\n

that it has entered into an agreement with a group of underwriters led by National Bank Financial Inc. to sell an issue of 6 million Non-Cumulative Fixed Rate First Preferred Shares, Series 20 (the \u201cPreferred Shares\u201d), carrying a face value of $25 per share, to raise gross proceeds of $150 million. Holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of $0.375 per share, to yield 6.00% annually.<\/p>\n

National Bank has also granted the underwriters an option to purchase, on the same terms, up to an additional 900,000 Preferred Shares. This option is exercisable in whole or in part by the underwriters at any time up to 30 days after closing of the offering. The maximum gross proceeds raised under the offering will be $172.5 million should this option be exercised in full.<\/p>\n

National Bank may redeem the Preferred Shares, subject to regulatory approval, in whole or in part, at a declining premium after five years.<\/p>\n

The net proceeds of this offering will be used for general corporate purposes and will qualify as Tier 1 capital for National Bank. The expected closing date is April 16, 2008.<\/p><\/blockquote>\n

Issue: National Bank of Canada 6.00% Non-Cumulative Fixed Rate First Preferred Shares Series 20<\/p>\n

Size: 6-million shares @ $25.00 = $150-million; Greenshoe for 900,000 shares = $22.5-million<\/p>\n

Dividend: $0.375 Quarterly; Long first dividend of $0.494178 payable August 15 based on April 16 Closing.<\/p>\n

Redemption: Redeemable commencing 2013-5-15 @ $26.00; Redemption price declines by $0.25 annually until 2017-5-15; Redeemable at $25.00 thereafter. [nb: “Redemption” means at the bank’s option]<\/p>\n

Priority: Parri Passu with all other 1st Preferred Shares, senior to Second Preferred Shares, Senior to Common shares, junior to everything else.<\/p>\n

Provisional Ratings: Pfd-1(low) by DBRS; P-2(high) by S&P; A1 by Moody’s<\/p>\n

Closing: April 16, 2008<\/p>\n

More Later.<\/p>\n

Later, More<\/b>: Some comparables:<\/p>\n

\n\n\n\n\n\n\n
NA Perps 3\/28<\/td>\n<\/tr>\n
Issue<\/td>\nQuote
3\/28<\/td>\n		Dividend<\/td>\nCurve
Price<\/td>\n		Pre-tax
Bid-YTW<\/td>\n<\/tr>\n
NA.PR.K<\/td>\n24.83-99<\/td>\n1.4625<\/td>\n25.00<\/td>\n5.97%<\/td>\n<\/tr>\n
NA.PR.L<\/td>\n21.00-24<\/td>\n1.2125<\/td>\n21.86<\/td>\n5.86%<\/td>\n<\/tr>\n
NA.PR.?<\/td>\nIssue
Price
25.00<\/td>\n		1.50<\/td>\n25.35<\/td>\n6.00%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Update, 2008-3-31<\/b>: After the carnage of March 31<\/a> – almost certainly brought about by retail looking at the handle on this coupon – the curvePrice is $25.21.<\/p>\n","protected":false},"excerpt":{"rendered":"

National Bank has announced: that it has entered into an agreement with a group of underwriters led by National Bank Financial Inc. to sell an issue of 6 million Non-Cumulative Fixed Rate First Preferred Shares, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1995","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1995"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1995\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}