Cdn Banc arranges overnight preferred share offering

Executive Summary

• Canadian Banc Corp. is undertaking an overnight offering of preferred shares led by National Bank Financial Inc., with sales ending on January 9, 2026, and expected closing on or about January 16, 2026.
• The preferred shares are priced at $10.32 per share, with net proceeds designated for investment in a portfolio of six major publicly traded Canadian banks.
• The shares offer cumulative preferential floating-rate monthly cash dividends based on the Canadian prime rate plus 1.50%, with a termination date currently set for December 1, 2028.

Key Details

• Offering Structure: Overnight offering of preferred shares led by National Bank Financial Inc.
• Pricing: $10.32 per preferred share.
• Market Context: Closing price of preferred shares on TSX on Jan. 7, 2026, was $10.41.
• Timeline:
  • Sales period ends: 8:30 a.m. EST on Jan. 9, 2026.
  • Expected closing: On or about Jan. 16, 2026 (subject to closing conditions, including TSX approval).
• Use of Proceeds: Net proceeds will be invested in a portfolio primarily consisting 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
• Dividend Terms:
  • Cumulative preferential floating-rate monthly cash dividends.
  • Rate: Prevailing Canadian prime rate + 1.50%.
  • Rate Floor/Ceiling: Minimum annual rate of 5.0%; Maximum annual rate of 8.0%.
  • Basis: Based on original $10 issue price.
• Redemption/Termination:
  • Termination date: Currently Dec. 1, 2028.
  • Extension: Subject to further five-year extensions (previously extended in the past).
  • Redemption Price: Original $10 issue price per share.
• Credit Rating: DBRS rating on preferred shares is Pfd-3 (low), effective Oct. 9, 2025.
• Historical Dividends: 245 consecutive dividends declared since inception; aggregate dividends declared total $11.53 per share, all made in tax-advantaged eligible Canadian dividends.
• Regulatory: Prospectus supplement to the short-form base shelf prospectus dated June 18, 2025, will be filed with securities commissions in all Canadian provinces.