XTD.PR.A To Get Bigger

Quadravest has announced:

TDb Split Corp. (the “Company”) is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Priority Equity Shares and Class A Shares of the Company.

The offering will be co-led by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc. and will also include a syndicate of dealers.

The Priority Equity Shares will be offered at a price of $10.00 per Share to yield 5.25% and the Class A Shares will be offered at a price of $6.15 per Class A Share to yield 9.75%.

The closing price on the TSX of each of the Priority Equity Shares and the Class A Shares on December 6, 2019 was $10.23 and $6.34, respectively.

Since inception of the Company, the aggregate dividends declared on the Priority Equity Shares have been $6.47 per share and the aggregate dividends declared on the Class A Shares have been $6.25 per share, for a combined total of $12.72 per unit. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the Company to invest in common shares of Toronto-Dominion Bank, a leading Canadian Financial institution.

The Company’s investment objectives are:
Priority Equity Shares:
i. to provide holders of the Priority Equity Shares with fixed, cumulative preferential monthly cash dividends currently in the amount of $0.04375 ($0.525 annually); and
ii. on or about the termination date, currently December 1, 2024 (subject to further 5 year extensions thereafter), to pay the holders of the Priority Equity Shares $10.00 per Priority Equity Share.

Class A Shares:
i. to provide holders of the Class A Shares with regular monthly cash dividends currently in the amount of $0.05 monthly ($0.60 annually); and
ii. to permit holders to participate in all growth in the net asset value of the Company above $10 per Unit, by paying holders on or about the termination date of December 1, 2024 (subject to further 5 year extensions thereafter) such amounts as remain in the Company after paying $10 per Priority Equity Share.

The sales period of this overnight offering will end at 9:00 a.m. EST on December 10, 2019. The offering is expected to close on or about December 23, 2019 and is subject to certain closing conditions including approval by the TSX.

XTD.PR.A was last mentioned on PrefBlog when it got bigger in 2014. The issue is not tracked by HIMIPref™ since it is too small for efficient trading – total assets (including Capital Units) were only 54-million as of November 30.

On November 29, the NAVPU was 15.84 and Whole Units are being offered at 16.15 – a premium of just under 2%, but still a good piece of business.

Update, 2019-12-16: They raised almost $36-million:

TDb Split Corp. (the “Company”) is pleased to announce it has completed the overnight marketing of up to 2,600,012 Priority Equity Shares and up to 1,568,100 Class A Shares of the Company. Total gross proceeds of the offering are expected to be approximately $35,643,935.

2 Responses to “XTD.PR.A To Get Bigger”

  1. baffled says:

    power corp and power financial are going to redeem $ 350 million of their first preferred shares

  2. skeptical says:

    Okay, 200 million for the 6% PWF.PR.I is gone for sure.
    and 150 million for the 5.9% PWF.PR.G is gone as well.
    These two account for $350 million.

    Next in line are the 5.8% but that will happen later I think.

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