Laurentian Bank announces interest rate reset on Limited Recourse Capital Notes, Series 1

Executive Summary

• Laurentian Bank announced the periodic interest rate reset for its Limited Recourse Capital Notes, Series 1 for the upcoming five-year period.
• The new annual interest rate is set at 7.403%, effective June 15, 2026, calculated via a predefined formula tied to Government of Canada yields plus a fixed spread.
• The reset applies to existing NVCC subordinated indebtedness maturing in 2081, with interest continuing to be paid semi-annually and redemption rights remaining unchanged.

Key Details

• Instrument: Limited Recourse Capital Notes, Series 1 (Non-Viability Contingent Capital / NVCC Subordinated Indebtedness)
• Reset Period: June 15, 2026, to June 15, 2031
• New Interest Rate: 7.403% per annum
• Rate Calculation: Government of Canada Yield (determined as of June 12, 2026) + 4.334% spread
• Payment Schedule: Semi-annually in arrears on June 15 and December 15; next payment due December 15, 2026
• Maturity Date: June 15, 2081
• Issuance Documentation: Issued under prospectus supplement dated May 3, 2021, to the short form base shelf prospectus dated March 31, 2021
• Associated Capital Instrument: Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares, Series 17 (NVCC), held by Computershare Trust Company of Canada as trustee of the LBC LRCN Limited Recourse Trust
• Recourse Structure: Noteholders' recourse is strictly limited to their proportionate share of the Limited Recourse Trust's assets (which, except in limited circumstances, consists of Preferred Shares Series 17)
• Redemption Terms: Bank may redeem notes between May 15 and June 15, starting in 2026 and every five years thereafter, contingent upon simultaneous redemption of Preferred Shares Series 17 and prior written approval from the Superintendent of Financial Institutions (Canada), requiring 10 to 60 days' notice
• Trustee: Computershare Trust Company of Canada