Canadian Banc Corp. Announces Overnight Offering of Preferred Shares

Executive Summary

• Canadian Banc Corp. announced an overnight offering of its preferred shares at $10.32 per share, led by National Bank Financial Inc., with expected closing around January 16, 2026.
• Net proceeds will be used to invest in a diversified portfolio of six major Canadian banks.
• The preferred shares carry cumulative floating‑rate monthly dividends (prime + 1.50%, minimum 5% and maximum 8%) and are scheduled for redemption at the $10 issue price on or about December 1, 2028 (subject to extensions).

Key Details

• Offering Price: $10.32 per preferred share.
• Closing Price Prior to Offering: $10.41 on TSX (Jan 7, 2026).
• Lead Manager: National Bank Financial Inc.
• Sales Period End: 8:30 a.m. EST, Jan 9, 2026.
• Expected Closing Date: On or about Jan 16, 2026, subject to TSX approval and other closing conditions.
• Dividend History: 245 consecutive dividends declared since inception; aggregate dividends $11.53 per share, paid as tax‑advantaged eligible Canadian dividends.
• Credit Rating: DBRS rating Pfd‑3 (low) effective Oct 9, 2025.
• Use of Proceeds: Investment in a portfolio primarily consisting of shares of Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, and 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%) based on original $10 issue price.
• Redemption at original $10 issue price on or about Dec 1, 2028, with possible five‑year extensions (historically extended).
• 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 executive quotes were provided in the release.)