{"id":4302,"date":"2008-12-04T01:28:21","date_gmt":"2008-12-04T05:28:21","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=4302"},"modified":"2008-12-04T01:28:21","modified_gmt":"2008-12-04T05:28:21","slug":"new-issue-maybe-bns-fixed-reset-625","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=4302","title":{"rendered":"New Issue (Maybe): BNS Fixed-Reset 6.25%+???"},"content":{"rendered":"<p>This is not the usual reporting of a new issue!<\/p>\n<p>Back in October, <a href=\"http:\/\/micro.newswire.ca\/release.cgi?rkey=1610063394&#038;view=85223-0&#038;Start=50\">Scotia announced<\/a>:<\/p>\n<blockquote><p>Scotiabank has agreed to purchase 104,609,895 trust units of CI from Sun Life for approximately $2.3 billion in cash representing all of Sun Life&#8217;s 37 per cent ownership stake in CI.<\/p><\/blockquote>\n<p>Today, Scotia <a href=\"http:\/\/micro.newswire.ca\/release.cgi?rkey=1612036558&#038;view=85223-0&#038;Start=0\">has announced<\/a>:<\/p>\n<blockquote><p>that the Bank plans to close its 37 per cent strategic investment in CI Financial Income Fund (&#8220;CI&#8221;; TSX: CIX.UN) next week, pending receipt of executed agreements, regulatory approvals and acceptance by the Toronto Stock Exchange.<\/p>\n<p>Scotiabank is purchasing Sun Life Financial&#8217;s (&#8220;Sun Life&#8221; TSX\/NYSE:SLF) stake of 104,609,895 CI trust units for $1.55 billion in cash, $500 million in common shares at $34.60 per share and $250 million in 6.25 per cent rate reset preferred shares.<\/p><\/blockquote>\n<p>That&#8217;s it. That&#8217;s all I know. None of the extant BNS Fixed-Resets have a 6.25% initial coupon, so this would be a new issue rather than a re-opening.<\/p>\n<p>The <a href=\"http:\/\/business.theglobeandmail.com\/servlet\/story\/RTGAM.20081203.wscotia1203\/BNStory\/Business\/home\">Globe &#038; Mail reports<\/a>:<\/p>\n<blockquote><p>National Bank Financial analyst Robert Sedran said Scotiabank&#8217;s Tier 1 capital ratio, the key measure that regulator&#8217;s watch, had been expected to dip to 8.8 per cent if the deal for the stake in CI had been all-cash. With the changes, Scotiabank&#8217;s Tier 1 ratio will now be about 9.1 per cent, he said. Regulators require the ratio, which is a measure of a bank&#8217;s capital against its assets weighted by the risk they pose, to stay above 7 per cent.<\/p>\n<p>Scotiabank said it will issue $500-million in common shares to Sun Life at $34.60 per share, and $250-million in 6.25 per cent rate reset preferred shares.<\/p>\n<p>The $34.60 equity price is almost 7 per cent higher to yesterday&#8217;s closing price, Mr. Aiken noted.<\/p><\/blockquote>\n<p>So what is this? Will Sunlife sell the shares in a secondary offering? Will there be a primary offering by Scotia of this issue? Will the shares come with a prospectus, or is it to be a restricted private placement forever?<\/p>\n<p>Stay tuned!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is not the usual reporting of a new issue! Back in October, Scotia announced: Scotiabank has agreed to purchase 104,609,895 trust units of CI from Sun Life for approximately $2.3 billion in cash representing &hellip;<\/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-4302","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4302","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=4302"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4302\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}