Scotia Managed Companies has announced:
allBanc Split Corp. (the “Company”) (TSX:ABK.A)(TSX:ABK.PR.C) is pleased to announce that is has completed its public offering of Class C preferred shares, series 1 (“Preferred Shares”) and Class A capital shares (“Capital Shares”), raising $60,713,709 through the issuance of 1,177,652 Preferred Shares and 560,000 Capital Shares at a price per share of $31.64 and $41.88, respectively. In addition, the Company has redeemed all of its outstanding Class B preferred shares. The Preferred Shares and Capital Shares were offered to the public on a best efforts basis by a syndicate of agents led by Scotiabank which included CIBC, RBC Capital Markets, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond James Ltd., GMP Securities L.P., Mackie Research Capital Corporation, Burgeonvest Bick Securities Limited, Desjardins Securities Inc. and Manulife Securities Incorporated.
allBanc Split Corp. is a mutual fund corporation created to hold a portfolio of common shares of the Bank of Montreal, Canadian Imperial Bank of Commerce, The Bank of Nova Scotia, Royal Bank of Canada and The Toronto Dominion Bank.
The Capital Shares and Preferred Shares of allBanc Split Corp. are listed for trading on the Toronto Stock Exchange under the symbols ABK.A and ABK.PR.C, respectively.
ABK.PR.C is a SplitShare paying 4.00% Eligible Dividends, maturing March 9, 2018. As reported earlier, proceeds are being used to refund ABK.PR.B, which matured today. This issue will be tracked by HIMIPref™ and assigned to the SplitShares subindex. Par value is, rather oddly, $31.64. The company’s website is at http://www.scotiamanagedcompanies.com/smc/profile.do?company=ABK.
The Pfd-2 (low) rating of the Class C Preferred Shares is primarily based on the downside protection available to holders of the Class C Preferred Shares (55.0%), the Class C Preferred Share distribution coverage ratio (2.0 times) and the credit quality of the underlying companies in the Company’s portfolio.
The issue traded 39,900 shares today in a range of 31.51-32.50 (rather a wide range!) before closing at 31.89-99, 10×10. Vital statistics are:
Maturity Type : Call
Maturity Date : 2014-03-10
Maturity Price : 31.64
Evaluated at bid price : 31.89
Bid-YTW : 3.18 %