Laurentian Bank of Canada Announces Closing of Bought Deal Offering and Concurrent Private Placement of Subscription Receipts

MONTREAL, QUEBEC--(Marketwired - May 26, 2017) -

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Laurentian Bank of Canada (TSX:LB) (Laurentian Bank or the Bank) has announced today that it has completed its previously announced bought deal offering (the Public Offering) and concurrent private placement (the Concurrent Private Placement) of subscription receipts (the Subscription Receipts).

On May 18, 2017, the Bank entered into an agreement with a syndicate of underwriters (the Underwriters) led by TD Securities Inc., BMO Capital Markets and RBC Capital Markets under which the Underwriters agreed to buy, on a bought deal basis, from Laurentian Bank 3,880,000 Subscription Receipts at a price of $51.70 per Subscription Receipt (the Offering Price) for total gross proceeds of $200,596,000. Effective at closing, the Underwriters exercised in full their over-allotment option to acquire an additional 291,000 Subscription Receipts, such that a total of 4,171,000 Subscription Receipts were issued for total gross proceeds of $215,640,700.

On May 18, 2017, Laurentian Bank also entered into a subscription agreement with Caisse de dépôt et placement du Québec (Caisse) pursuant to which Caisse agreed to purchase, on a prospectus-exempt basis, 483,560 Subscription Receipts (the Placement Subscription Receipts) at the Offering Price for gross proceeds to the Bank of $25,000,052. The conditions relating to the holding and release from escrow of the subscription amount from the Concurrent Private Placement and the issuance of the underlying shares pursuant to the Placement Subscription Receipts are substantially equivalent to those applicable to the Public Offering.

The Bank intends to use the net proceeds from the Public Offering and the Concurrent Private Placement to finance a portion of the purchase price for its proposed acquisition (the Acquisition) of all of the issued and outstanding equity interests in the capital of NCF Holdings LLC (Northpoint Commercial Finance), which, together with its subsidiaries, is among the leading US and Canadian inventory finance lenders with a portfolio of approximately $1.2 billion as at March 31, 2017. The Acquisition is expected to close before the end of the fiscal year ending October 31, 2017, subject to customary closing conditions, including applicable regulatory notifications, waiting periods and approvals.