Power Financial Corp. has agreed to a $150 million domestic offering of preferred shares on a bought-deal basis, the financial services holding company said Thursday.

The 6 million Non-Cumulative First Preferred Shares, Series O, will be priced at $25 a share and will carry an annual dividend yield of 5.8%. Closing is expected on or about October 9.

The issue will be underwritten by a syndicate of underwriters led by BMO Capital Markets, Scotia Capital Inc. and RBC Capital Markets.

Power Financial has also granted the underwriters an option to purchase an additional 4 million Series O Shares at the same offering price. Should the underwriters’ option be exercised fully, the total gross proceeds of the offering will be $250 million.

“Proceeds from the issue will be used to supplement the Corporation’s financial resources and for general corporate purposes,” Power Financial said.

Power Financial owns life insurer Great-West Lifeco Inc. and mutual fund giant IGM Financial Inc.

IE