Skip to content.

National Bank of Canada completes C$200 million preferred share offering

Date Closed

November 7, 2012

Lead Office



200.00 Million CAD

On November 7, 2012, National Bank of Canada (“National Bank”) completed issuing, on a bought deal basis, 7 million non-cumulative 5-year rate reset first preferred shares series 28 (the “Series 28 Preferred Shares”), at a price of C$25 per share, to raise gross proceeds of C$175 million.

National Bank granted the underwriters an option to purchase, on the same terms, up to an additional 1 million Series 28 Preferred Shares. This option was exercised in whole by the underwriters, increasing the gross proceeds raised under the offering to $200 million. The Series 28 Preferred Shares will yield 3.80% annually, payable quarterly, as and when declared by the Board of Directors of National Bank, for the initial period ending November 15, 2017. The first of such dividends shall be payable on February 15, 2013. The dividend rate will reset every five years at a level of 243 basis points over the then 5-year Government of Canada bond yield.

Holders of the Series 28 Preferred Shares will have the right to convert their shares into an equal number of non-cumulative floating rate first preferred shares Series 29 (the “Series 29 Preferred Shares”), subject to certain conditions, on November 15, 2017, and on November 15th every five years thereafter. Holders of the Series 29 Preferred Shares will be entitled to receive quarterly floating dividends, as and when declared by the Board of Directors of National Bank, equal to the 90-day Government of Canada Treasury Bill rate plus 243 basis points.

The offering was led by National Bank Financial Inc., with a syndicate comprising RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Desjardins Securities Inc., Laurentian Bank Securities Inc. Canaccord Genuity Corp., GMP Securities L.P., Brookfield Financial Corp., Dundee Securities Ltd., Industrial Alliance Securities Inc., Manulife Securities Incorporated and Raymond James Ltd.

McCarthy Tétrault LLP represented National Bank of Canada, the issuer, with a team led by Frédéric Cotnoir.