Cdn Banc arranges preferred share overnight offering

Executive Summary

• Canadian Banc Corp. announced an overnight offering of preferred shares priced at $10.45 each, yielding 6.2 % annually.
• The net proceeds will be used to invest in a diversified portfolio of six major Canadian banks.
• The offering is led by National Bank Financial Inc., with sales ending on Oct. 2, 2025 and closing expected around Oct. 9, 2025, subject to TSX approval.

Key Details

• Offering Size & Price: Preferred shares offered at $10.45 per share (closing price on Sept. 30, 2025 was $10.51).
• Yield: 6.2 % annual yield based on the offering price.
• Lead Manager: National Bank Financial Inc.
• Sales Period: Ends at 9 a.m. EST on Oct. 2, 2025; expected closing on or about Oct. 9, 2025.
• Closing Conditions: Subject to TSX approval and other customary closing conditions.
• Use of Proceeds: To invest in a portfolio primarily consisting of six publicly‑traded Canadian banks: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and Toronto‑Dominion Bank.
• Dividend History: 242 consecutive dividends declared on the preferred shares; aggregate dividends to date $11.38 per share, paid as tax‑advantaged eligible Canadian dividends.
• Rating: DBRS rating effective Nov. 13, 2024 is Pfd‑3 (low).
• Investment Objectives of Preferred Shares:
• Provide cumulative preferential floating‑rate monthly cash dividends equal to Canadian prime rate + 1.50 % (minimum 5.0 %, maximum 8.0 %).
• Repay original $10 issue price on or about Dec. 1, 2028 (subject to possible five‑year extensions).
• Regulatory Filings: Prospectus supplement to the short‑form base shelf prospectus dated June 18, 2025 will be filed with Canadian securities commissions; no sale may occur until filing is complete.

Notable Quotes

(No direct quotes were provided in the release.)