Canadian Banc Corp. Announces Overnight Offering of Preferred Shares

Executive Summary

• Canadian Banc Corp. announced an overnight offering of its Class A Preferred Shares at $10.45 per share, yielding 6.2%, with expected closing around October 9, 2025.
• 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.; the shares are listed on the TSX (BK.PR.A) and subject to TSX approval and other closing conditions.

Key Details

• Offering Size & Price: Preferred Shares offered at $10.45 each; price reflects a 6.2% yield.
• Closing Timeline: Sales period ends 9:00 a.m. EST on October 2, 2025; anticipated closing on or about October 9, 2025, subject to TSX approval and other conditions.
• Lead Manager: National Bank Financial Inc. is the lead underwriter for the transaction.
• Historical Dividend Context: 242 consecutive dividends declared since inception; aggregate dividends $11.38 per share; all paid as tax‑advantaged eligible Canadian dividends.
• Rating Information: DBRS rating on the Preferred Shares effective November 13, 2024 is Pfd‑3 (low).
• Use of Proceeds: Net proceeds will be allocated to a portfolio primarily consisting of 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.
• Investment Objectives of Preferred Shares:
• Provide cumulative floating‑rate monthly cash dividends equal to Canadian prime rate + 1.50% (minimum 5.0%, maximum 8.0%) based on the original $10 issue price.
• On or about the termination date (currently December 1, 2028, with possible five‑year extensions), return the original $10 issue price to holders.
• Regulatory Documentation: A prospectus supplement to the short‑form base shelf prospectus dated June 18, 2025 will be filed with Canadian securities regulators; no sale may occur until filing is complete.

Notable Quotes

(No direct quotes were provided in the release.)