Laurentian Bank of Canada today announced a $110 million public offering of 4.4 million Non-Cumulative Class A Preferred Shares Series 10.

The bank will issue the shares, priced at $25 per share, and the holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of $0.328 per share, to yield 5.25% annually.

Subject to regulatory approvals, the bank may, on or after June 15, 2009, redeem the shares in whole or in part at a declining premium. The shares will be convertible into common shares, at the bank’s option, on or after June 15, 2009, at the higher of 95 percent of the weighted average trading price of the common shares or $2.50.

The preferred shares may also be convertible, under certain conditions, into a newly issued series of Class A preferred shares at the holder’s option.

The offering will be underwritten by a syndicate co-led by National Bank Financial Inc. and Laurentian Bank Securities Inc. The expected closing date is April 15, 2004.

The net proceeds of this offering will be added to the bank’s general funds and will be used for general business purposes and, to pay the redemption price of the outstanding class A preferred shares series 7 and 8. The purpose of this issue is to enlarge the bank’s Tier 1 capital base.