Power Financial Corporation
TSX : PWF

Power Financial Corporation

September 21, 2005 12:39 ET

Power Financial Corporation: Issue of Preferred Shares

MONTREAL, QUEBEC--(CCNMatthews - Sept. 21, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Power Financial Corporation (TSX:PWF) announced today that it has agreed to issue 10,000,000 Non-Cumulative First Preferred Shares, Series K, for gross proceeds of $250 million. The Preferred Shares will be priced at $25 per share and will carry an annual dividend yield of 4.95%. Closing is expected on or about October 7, 2005.

Proceeds from the issue will be used to supplement Power Financial's financial resources, to repay the Corporation's $150 million principal amount of 7.65% debentures when they mature on January 5, 2006 and for general corporate purposes.

Subject to compliance with all necessary legal requirements, the issue will be underwritten by a syndicate led by BMO Nesbitt Burns Inc.

Power Financial Corporation is a diversified management and holding company that has interests, directly and 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 major media and entertainment, energy, water, waste services and specialty minerals companies in Europe.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

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