Canadian Banc closes $62.7-million overnight offering

Executive Summary

• Canadian Banc Corp. completed an overnight offering of preferred shares, raising approximately $62.7 million in gross proceeds.
• The shares were priced at $10.45 each, yielding 6.2 %, and the closing price on the TSX was $10.50.
• Net proceeds will be used to build a portfolio of six major Canadian banks, aligning with the company’s investment objectives for cumulative floating‑rate dividends and principal repayment at termination (Dec 1 2028, subject to extensions).

Key Details

• Offering Size & Pricing
• Gross proceeds expected: ≈ $62.7 million.
• Offering price: $10.45 per preferred share.
• Yield: 6.2 %.

• TSX closing price on Oct 1 2025: $10.50.

• Timeline & Conditions

• Sales period has ended; offering expected to close on or about Oct 9 2025.

• Closing subject to customary conditions, including Toronto Stock Exchange approval.

• Lead Manager

• Offering led by National Bank Financial Inc.

• Use of Proceeds

• Invest in a portfolio of six publicly traded Canadian banks:

  • Bank of Montreal
  • Canadian Imperial Bank of Commerce
  • Royal Bank of Canada
  • Bank of Nova Scotia
  • National Bank of Canada
  • Toronto‑Dominion Bank

• Preferred Share Terms

• Cumulative preferential floating‑rate monthly cash dividends equal to Canadian prime rate + 1.50 % (minimum 5.0 %, maximum 8.0 %).

• Principal repayment at termination date (Dec 1 2028, with possible five‑year extensions) of the original $10 issue price per share.

• Regulatory Filings

• Prospectus supplement to short‑form base shelf prospectus (dated June 18 2025) to be filed with Canadian securities commissions.
• No sale or acceptance of offers will occur until the prospectus supplement is filed.