Power Financial Corporation

Power Financial Corporation

August 04, 2006 10:00 ET

Power Financial Corporation: Closing of Preferred Share Issue

MONTREAL, QUEBEC--(CCNMatthews - Aug. 4, 2006) - Not for distribution to U.S. news wire services or dissemination in the United States.

Power Financial Corporation (TSX:PWF) announced today the successful completion and closing of an offering of $200 million of the Corporation's first preferred shares.

The 8,000,000 Non-Cumulative First Preferred Shares, Series L (the "Series L Shares") were priced at $25.00 per share and carry a 5.10% annual dividend. The shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol "PWF.PR.L". Proceeds from the issue will be used to supplement Power Financial's financial resources and for general corporate purposes.

The issue was bought by an underwriting group led by BMO Capital Markets and Scotia Capital Inc.

The initial dividend on the Series L Shares in the amount of $0.3074 per share has been declared by the Board of Directors of Power Financial to be payable on October 31, 2006 to shareholders of record at the close of business on October 10, 2006.

Power Financial Corporation is a diversified management and holding company that has interests, directly or indirectly, in companies that are active in the financial services sector in Canada, the United States and Europe and has substantial holdings in a group of energy, water, waste services, specialty minerals and cement and building materials companies based in Europe.

Forward-looking Statements

Certain statements in this News Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect Power Financial's or its subsidiaries' and affiliate's current expectations. These statements may include without limitation, statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of Power Financial or its subsidiaries and affiliate for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments as well as other factors that are believed to be appropriate in the circumstances.

Actual results could differ materially from those projected and should not be relied upon as a prediction of future events. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond Power Financial's or its subsidiaries' and affiliate's control, affect the operations, performance and results of Power Financial or its subsidiaries and affiliate and their business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates, the effect of applying future accounting changes, business competition, technological change, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, Power Financial's or its subsidiaries' or affiliate's ability to complete strategic transactions and integrate acquisitions and Power Financial's or its subsidiaries' and affiliate's success in anticipating and managing the foregoing risks.

The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of Power Financial's or its subsidiaries' and affiliate's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.

Other than as specifically required by law, Power Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results otherwise.

Additional information about the risks and uncertainties of Power Financial's business is provided in its disclosure materials, including its most recent Management Discussion and Analysis of Operating Results and Annual Information Form, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Contact Information

  • Power Financial Corporation
    Mr. Edward Johnson
    Senior Vice-President, General
    Counsel and Secretary
    (514) 286-7400