At first new deals from venerable issuers were in demand. Then resource plays picked up. Now, diversified names are making a comeback.
What exactly falls under the diversified umbrella? Well, quite literally, a diverse range of names. At investment banks, the industry group often includes agricultural names, manufacturing companies and sometimes specialty areas like aerospace firms.
Given the hot market for Canadian equities, these firms finally hold some weight with investors.
To tap this demand, both Superior Plus Corp. and Premium Brands Holding Corp. hit the market this week. But they did it wisely, offering convertible bonds that attract retail investors.
Superior Plus' deal came in at $150-million and pays 6 per cent annually. Premium Brands issued $50-million at 5.75 per cent.
National Bank Financial and CIBC co-led Superior Plus' offering. NBF then teamed up with Scotia Capital to co-lead Premium Brands' deal on Wednesday.
Tim Kiladze