Montreal-based Laurentian Bank of Canada said May 26 that it completed the offering of its subscription receipts for total gross proceeds of about C$240.6 million.
On May 18, the bank agreed to sell 3,880,000 subscription receipts at C$51.70 apiece, on a bought-deal basis, to a syndicate of underwriters led by TD Securities Inc., BMO Capital Markets and RBC Capital Markets.
Underwriters fully exercised their overallotment option to purchase additional 291,000 subscription receipts for gross proceeds of approximately C$215.6 million.
The bank also agreed to sell 483,560 subscription receipts to Caisse de depot et placement du Quebec on a prospectus-exempt basis for gross proceeds of approximately C$25 million.
Laurentian Bank intends to use the net proceeds from the offering to fund a portion of its acquisition of Northpoint Commercial Finance, which is expected to close before the end of the fiscal year ending Oct. 31. The U.S. and Canadian inventory finance lender had a portfolio of approximately C$1.2 billion as of March 31.
Once the deal closes, subscription receipt holders will receive 1 common share in the bank's capital for every subscription receipt they hold, plus an amount equal to the per-share cash dividend declared by the bank.
The subscription receipts will begin trading on the Toronto Stock Exchange on May 26, under the symbol LB.N.