/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
MONTREAL, April 15,
2024 /CNW/ - National Bank of Canada (the "Bank") (TSX: NA) announced today
that it does not intend to exercise its right to redeem all or part
of the currently outstanding 14,000,000 Non-Cumulative 5-Year Rate
Reset First Preferred Shares, Series 30, Non-Viability Contingent
Capital (NVCC) (the "Series 30 Shares") on May 15, 2024. As a result, subject to certain
conditions, the holders of the Series 30 Shares will have the right
to convert all or part of their Series 30 Shares on a one-for-one
basis into Non-Cumulative Floating Rate First Preferred Shares,
Series 31 (NVCC) (the "Series 31 Shares") on May 15, 2024, in accordance with the terms of the
Series 30 Shares described in the prospectus supplement dated
January 31, 2014.
Holders who do not exercise their right to convert their Series
30 Shares into Series 31 Shares on May 15,
2024, will retain their Series 30 Shares.
The foregoing conversions are subject to the conditions
that:
i.
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if the Bank determines
that there would remain outstanding on May 15, 2024, less than
1,000,000 Series 31 Shares, after having taken into account all
Series 30 Shares tendered for conversion into Series 31 Shares,
then holders of Series 30 Shares will not be entitled to convert
their shares into Series 31 Shares, or
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ii.
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if the Bank determines
that there would remain outstanding on May 15, 2024, less than
1,000,000 Series 30 Shares, after having taken into account all
Series 30 Shares tendered for conversion into Series 31 Shares,
then all remaining Series 30 Shares will automatically be converted
into Series 31 Shares without the consent of the holders on May 15,
2024.
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In either case, the Bank shall give a notice to that effect to
all registered holders of Series 30 Shares no later than
May 8, 2024.
Holders of Series 30 Shares, should any remain outstanding after
May 15, 2024, will be entitled to
receive fixed-rate non-cumulative preferential cash dividends on a
quarterly basis, as and when declared by the Board of Directors of
the Bank and subject to the provisions of the Bank Act
(Canada). The dividend rate for
the five-year period commencing on May 16,
2024, and ending on May 15,
2029, will be 6.191%, being equal to the sum of the
five-year Government of Canada Bond yield (3.791%) plus 2.40%, as
determined in accordance with the terms of the Series 30
Shares.
Holders of Series 31 Shares, should any be issued on
May 15, 2024, will be entitled to
receive floating rate non-cumulative preferential cash dividends on
a quarterly basis, as and when declared by the Board of Directors
of the Bank and subject to the provisions of the Bank Act
(Canada). The dividend rate for
the three-month period commencing on May 16,
2024, and ending on August 15,
2024, will be 7.380%, being equal to the sum of the 90-day
Government of Canada Treasury Bill yield (4.98%) plus 2.40%,
calculated on the basis of actual number of days elapsed in such
quarterly floating rate period divided by 365, as determined in
accordance with the terms of the Series 31 Shares.
Beneficial owners of Series 30 Shares who wish to exercise their
conversion right should communicate with their broker or other
nominee to obtain instructions for exercising such right during the
conversion period, which will run from April
15, 2024, until April 30,
2024, at 5:00 p.m. (EDT).
Caution Regarding
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements. These statements are based on a number of
assumptions and are subject to risk factors, inherent risks and
uncertainties, many of which are beyond National Bank's control and
the impacts of which are difficult to predict. Except
as required by law, National Bank does not undertake to update any
forward-looking statements, whether written or oral, that may be
made from time to time, by it or on its behalf. The forward-looking
information contained in this press release is presented for the
purpose of interpreting the information contained herein and may
not be appropriate for other purposes.
About National Bank of
Canada
With $434 billion in assets as at January 31,
2024, National Bank of Canada, is one of Canada's six systematically important banks.
The Bank has approximately 30,000 employees in
knowledge-intensive positions and operated through three business
segments in Canada: Personal and
Commercial Banking, Wealth Management and Financial Markets. A
fourth segment, U.S. Specialty Finance and International,
complements the growth of its domestic operations. Its securities
are listed on the Toronto Stock Exchange (TSX: NA). Follow the
Bank's activities at nbc.ca or via social
media.
SOURCE National Bank of Canada