{"id":46022,"date":"2023-11-15T22:06:21","date_gmt":"2023-11-16T03:06:21","guid":{"rendered":"https:\/\/prefblog.com\/?p=46022"},"modified":"2023-11-15T22:06:21","modified_gmt":"2023-11-16T03:06:21","slug":"bk-pr-a-to-be-downgraded-by-dbrs-to-pfd-3low","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=46022","title":{"rendered":"BK.PR.A To Be Downgraded by DBRS to Pfd-3(low)"},"content":{"rendered":"

Quadravest has announced<\/a> (emphasis added):<\/p>\n

Canadian Banc Corp. (the \u201cCompany\u2019) is pleased to announce it will undertake an offering of Preferred Shares (TSX: BK.PR.A) of the Company. The offering will be led by National Bank Financial Inc.<\/p>\n

The sales period of this overnight offering will end at 9:00 a.m. EST on November 16, 2023. The offering is expected to close on or about November 23, 2023 and is subject to certain closing conditions including approval by the TSX.<\/p>\n

The Preferred Shares will be offered at a price of $9.80 per Preferred Share to yield 8.16%.<\/p>\n

The closing price on the TSX of the Preferred Shares on November 14, 2023 was $9.97.<\/p>\n

Since the inception of the Company, 219 consecutive dividends have been declared for the Preferred shares. The aggregate dividends declared on the Preferred Shares total $9.97 per share. All distributions to date have been made in tax advantaged eligible Canadian dividends.<\/p>\n

The Company has been advised by DBRS that effective November 17, 2023, the rating on the Preferred shares will be Pfd-3 (low).<\/b><\/p>\n

The net proceeds of the offering will be used by the Company to invest in a portfolio consisting primarily of six publicly traded Canadian Banks as follows:<\/p>\n

\n\n\n\n\n
Bank of Montreal<\/td>\n Canadian Imperial Bank of Commerce<\/td>\n Royal Bank of Canada<\/td>\n<\/tr>\n
The Bank of Nova Scotia<\/td>\n National Bank of Canada<\/td>\n The Toronto-Dominion Bank<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

The Company\u2019s Preferred Share investment objectives are to:
\ni. provide holders with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the prevailing Canadian prime rate plus 1.50% (minimum annual rate of 5.0% and maximum annual rate of 8.0%) based on original $10 issue price; and
\nii. on or about the termination date, currently December 1, 2028 (subject to further 5 year extensions and it has been extended in the past) to pay holders the original $10 issue price of those shares.<\/p><\/blockquote>\n

The affected issue is BK.PR.A.<\/p>\n

Thanks to Assiduous Reader niagara<\/i> for bringing this to my attention<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

Quadravest has announced (emphasis added): Canadian Banc Corp. (the \u201cCompany\u2019) is pleased to announce it will undertake an offering of Preferred Shares (TSX: BK.PR.A) of the Company. The offering will be led by National Bank …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-46022","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/46022","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=46022"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/46022\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}