New Issue: POW 5.60% Straight

And thick and fast they came at last, and more and more and more!

Power Corporation has announced:

that it has agreed to issue 6,000,000 Non-Cumulative First Preferred Shares, Series G (the “Series G Shares”) on a bought deal basis, for gross proceeds of $150 million. The Series G Shares will be priced at $25.00 per share and will carry an annual dividend yield of 5.60%. Closing is expected on or about February 28, 2012. The issue will be underwritten by a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank.

Power Corporation of Canada has also granted the underwriters an option to purchase an additional 2,000,000 Series G Shares at the same offering price. Should the underwriters’ option be exercised fully, the total gross proceeds of the Series G Share offering will be $200 million.

Proceeds from the issue will be used to supplement the Corporation’s financial resources and for general corporate purposes.

9 Responses to “New Issue: POW 5.60% Straight”

  1. drap1 says:

    SLF tomorrow???

  2. drap1 says:

    any idea what the status is of the new bna issue mentioned in the pref letter? i thought they were supposed to show up in jan.

  3. jiHymas says:

    any idea what the status is of the new bna issue mentioned in the pref letter?

    This was not a public issue – it was done as a swap against capital units, held solely by BAM Investments; see the post about the BNA Annual Report and the Press Release of 2011-12-22.

    The dilution has been reflected in the reported NAV for 2012-1-31.

  4. drap1 says:

    also, given that there would still be time to retire them before 2022, do you think that we’ll see a bunch of bank fixed reset new issues in the near future to replace some of the +400 point ones that are coming due in 2014?

  5. drap1 says:

    “This was not a public issue”….right, thanks

  6. jiHymas says:

    given that there would still be time to retire them before 2022, do you think that we’ll see a bunch of bank fixed reset new issues in the near future to replace some of the +400 point ones that are coming due in 2014?

    I feel quite certain that the banks will return to market in the future – but at the moment they are awash in capital; most of it high quality equity capital.

    Any new issues will have the NVCC clause, making the 2022 deadline for non-NVCC issues not applicable.

  7. mpisni says:

    Hi James, Do you know what the symbol is for this new issue ?

    Thanks

  8. […] POW.PR.G is a 5.60% Straight Perpetual announced February 15. […]

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