By Cristal Cody
Tupelo, Miss., May 15 – ECN Capital Corp. announced on Monday that it priced C$100 million of cumulative five-year rate reset preferred shares with a 6.25% annual dividend.
The company sold 4 million shares of the series C preferred stock at C$25.00 per share.
The deal includes an over-allotment option of C$25 million, or 1 million preferred shares.
BMO Capital Markets Corp., CIBC World Markets Inc., National Bank Financial Inc., RBC Capital Markets and TD Securities Inc. were the lead managers.
The rate will reset every five years to the sum of the then current five-year Government of Canada bond yield and 519 basis points, or in any event not less than 6.25%.
On June 30, 2022 and on June 30 of every following fifth year, the company may redeem the preferred shares at par.
Series C holders will have the right to convert their preferred shares into series D cumulative floating-rate preferred shares on June 30, 2022 and on June 30 of every fifth year thereafter. Series D preferred shareholders will be entitled to receive dividends equal to the sum of the then current three-month Government of Canada treasury bill yield and 519 bps.
On June 30, 2027 and on June 30 of every fifth year thereafter, the company may redeem the series D preferred shares at par. On any other date that is not a series D redemption date after June 30, 2022, ECN Capital may redeem the shares at C$25.50 per share.
The proceeds from the offering are expected to be used to originate and finance, directly and indirectly, finance assets, to fund future acquisitions and for general corporate purposes.
ECN Capital is a Toronto-based commercial finance company.
| Issuer: | ECN Capital Corp.
|
| Amount: | C$100 million, 4 million shares
|
| Greenshoe: | C$25 million, 1 million shares
|
| Maturity: | June 30, 2022
|
| Securities: | Cumulative five-year rate reset preferred shares
|
| Bookrunners: | BMO Capital Markets Corp., CIBC World Markets Inc., National Bank Financial Inc., RBC Capital Markets and TD Securities Inc.
|
| Dividend: | 6.25%; resets every five years at five-year Government of Canada bond yield plus 519 bps, or in any event not less than 6.25%
|
| Price: | C$25.00 per share
|
| Call feature: | June 30, 2022 and on June 30 of every following fifth year at par
|
| Pricing date: | May 15
|
| Settlement date: | May 25
|
| Distribution: | Canada
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