National Bank of Canada extends offers to buy preferreds at premium

By Susanna Moon

Chicago, April 11 - National Bank of Canada said holders now have until 5 p.m. ET on April 26 to tender in the offer to purchase three series of outstanding non-cumulative five-year rate reset first preferred stock.

The deadline for the offers was extended from 5 p.m. ET on April 11. The bank announced the offers on Feb. 24, and they began on March 4.

The purchase prices for the preferreds are as follows:

• C$26.81 per series 21 preferred, which represents a 2.8% premium over the Feb. 23 closing price;

• C$28.03 per series 24 preferred, or a 2.5% premium over the Feb. 23 closing price; and

• C$28.03 per series 26 preferred, or a 2.4% premium over the Feb. 23 closing price.

The bank also said it accepted for purchase 4,372,089, or 54.31%, of series 21 preferreds, 4,162,483, or 61.21%, of series 24 preferreds and 3,629,923, or 62.58%, of series 26 preferreds, for a total payment of $335,636,846.27.

In addition, shareholders of record as of April 8, including those who tender their preferreds, also will receive the regularly scheduled dividend payment on May 15, as previously announced.

The Montreal-based bank said the offers represent an appropriate use of its available cash and are part of prudent capital management practice under its capital plan to meet regulatory requirements.

The purchases will be funded from existing cash reserves. Any preferreds acquired under the offers will be canceled.

The offers are not subject to any minimum number of preferreds being deposited.

Computershare Investor Services Inc. is the depositary.

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