National Bank of Canada announces conversion rights for series 30 preferred shares

Chicago, March 18 – National Bank of Canada announced Monday that it does not intend to exercise its right to redeem all or part of the currently outstanding 14 million series 30 non-cumulative five-year rate reset first preferred shares on May 15.

As a result of this, the holders of the series 30 preferred shares have the right to convert all or part of their shares on a one-for-one basis into non-cumulative floating-rate first preferred shares series 31 on May 15 in accordance with the terms their notes described in the prospectus supplement dated Jan. 31, 2014 to the short form base shelf prospectus dated Oct. 5, 2012, according to a news release.

Holders of series 30 preferred shares who do not exercise their right to convert their shares into series 31 preferred shares on May 15 will retain their series 30 preferred shares.

If National Bank finds that there will be less than 1 million shares of either series 30 preferred shares or series 31 preferred shares when the offer ends, either the conversion will not occur if there will be less than 1 million series 31 preferred shares or automatic conversion will occur if there will be less than 1 million series 30 preferred shares.

The conversion period will run from April 15 to 5 p.m. ET on April 30, and holders of shares who wish to exercise their conversion right should contact their broker or other nominee to obtain instructions.

National Bank of Canada is a Montreal-based financial institution.

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