Canadian Banc Corp. to offer preferred shares at $10.45

TORONTO - Canadian Banc Corp., with a market capitalization of $75.6 billion, announced Wednesday an offering of its Preferred Shares (TSX:BK.PR.A) at a price of $10.45 per share to yield 6.2%, according to a press release statement.

The overnight offering, led by National Bank Financial Inc., will end its sales period at 9:00 a.m. EST on Thursday. The transaction is expected to close around October 9, 2025, pending certain conditions including TSX approval.

The closing price of the Preferred Shares on the TSX was $10.51 on September 30. The company noted that 242 consecutive dividends have been declared for the Preferred shares since inception, with aggregate dividends totaling $11.38 per share. All distributions to date have been made as tax-advantaged eligible Canadian dividends. According to InvestingPro data, the company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 1.95%. InvestingPro analysis reveals 13 additional key insights about the company’s dividend sustainability and growth potential.

The Preferred shares currently hold a DBRS rating of Pfd-3 (low), effective November 13, 2024.

Proceeds from the offering will be used to invest in a portfolio consisting primarily of six publicly traded Canadian banks: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and The Toronto-Dominion Bank. InvestingPro analysis shows the company maintains a strong financial health score of 2.73 (rated as "GOOD"), with particularly robust price momentum metrics. Detailed financial analysis and comprehensive research reports for these banking investments are available through InvestingPro’s extensive database of over 1,400 stocks.

The Preferred Share investment objectives include providing holders with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Canadian prime rate plus 1.50%, with minimum and maximum annual rates of 5.0% and 8.0% respectively. Additionally, on the termination date, currently December 1, 2028, the company aims to pay holders the original $10 issue price.

A prospectus supplement to the company’s short form base shelf prospectus dated June 18, 2025, will be filed with securities commissions across Canadian provinces.

In other recent news, the Bank of New York Mellon has been active with several significant developments. The company priced a $500 million preferred stock offering at a 5.95% dividend rate, with the shares set to reset their rate after 2030. Additionally, the company has eliminated its Series G Noncumulative Perpetual Preferred Stock following the redemption of all outstanding shares. In a move affecting its lending operations, BNY announced a reduction in its Prime Lending Rate from 7.50% to 7.25%, effective September 18, 2025. Analysts have also been adjusting their outlooks on the company. Truist Securities raised its price target for Bank of New York Mellon to $100, maintaining a Hold rating, while Keefe, Bruyette & Woods increased their target to $113, citing the company’s strong quarterly performance. These actions reflect the company’s ongoing financial strategies and market responses.

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