Financial 15 Split Corp has announced it has:
today completed its secondary offering of 1,980,000 Preferred Shares and 1,980,000 Class A Shares of the Company for aggregate gross proceeds of $39,105,000, bringing the Company’s net assets to approximately $169 million. The shares will continue to trade on the Toronto Stock Exchange under the existing symbols FTN (Class A shares) and FTN.PR.A (Preferred shares).
The Preferred Shares were offered at a price of $10.00 per share to yield 5.25% based on current distribution policy. The Class A shares were offered at a price of $9.75 per share to yield 15.47% based on current distribution policy. RBC Capital Markets and CIBC World Markets were co-lead agents for the offering.
The proceeds from the re-opening of the Company, net of expenses and Agents’ fee, will be used by the Company to invest in an actively managed portfolio of 15 financial services companies made up of 10 Canadian and 5 U.S. issuers
There were about 7.3-million units outstanding as at November 30, 2009, so this offering improves liquidity by about 25%.
FTN.PR.A was last mentioned when the treasury offering was announced. FTN.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.
[…] 17% of total assets, but this does not explain the sharp decline in income coverage – the secondary offering closed in mid-April, so the cash was only there for about six […]