PrefBlog

Bank of Nova Scotia has announced:

a domestic public offering of 8 million non-cumulative 6.25% 5-year rate reset preferred shares Series 28 (the “Preferred Shares Series 28”) at a price of $25.00 per share, for gross proceeds of $200 million.

Holders of Preferred Shares Series 28 will be entitled to receive a non-cumulative quarterly fixed dividend for the initial period ending April 25, 2014 yielding 6.25% per annum, as and when declared by the Board of Directors of Scotiabank. Thereafter, the dividend rate will reset every five years at a rate equal to 4.46% over the 5-year Government of Canada bond yield. Holders of Preferred Shares Series 28 will, subject to certain conditions, have the right to convert all or any part of their shares to non-cumulative floating rate preferred shares Series 29 (the “Preferred Shares Series 29”) of Scotiabank on April 26, 2014 and on April 26 every five years thereafter.

Holders of the Preferred Shares Series 29 will be entitled to receive a non-cumulative quarterly floating dividend at a rate equal to the 3-month Government of Canada Treasury Bill yield plus 4.46%, as and when declared by the Board of Directors of Scotiabank. Holders of Preferred Shares Series 29 will, subject to certain conditions, have the right to convert all or any part of their shares to Preferred Shares Series 28 on April 26, 2019 and on April 26 every five years thereafter.

The Bank has agreed to sell the Preferred Shares Series 28 to a syndicate of underwriters led by Scotia Capital Inc. on a bought deal basis. The Bank has granted to the underwriters an option to purchase up to an additional 2 million Preferred Shares Series 28 at closing, which option is exercisable by the underwriters any time up to 48 hours before closing.

Closing is expected to occur on or after January 30, 2009. This domestic public offering is part of Scotiabank’s ongoing and proactive management of its Tier 1 capital structure.

The initial dividend – if declared! – will be $0.37671 payable April 28, based on anticipated closing January 30.

Update: They’re selling like hotcakes! Scotia has announced:

that as a result of strong investor demand for its domestic public offering of non-cumulative 5-year rate reset preferred shares Series 28 (the “Preferred Shares Series 28”), the size of the offering has been increased to 10 million Preferred Shares Series 28. The gross proceeds of the offering will now be $250 million.

Update, 2009-1-29: This issue will trade as BNS.PR.X.

This entry was posted on Wednesday, January 21st, 2009 at 5:11 pm and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.