DGS.PR.A To Get Bigger

Dividend Growth Split Corp. has announced (via SEDAR; press release dated 2010-4-1; management’s too lazy to put it on their web site [Update: But see the comments!]):

it has filed a preliminary short form prospectus with respect to a treasury offering of preferred shares and class A shares.

Dividend Growth Split Corp. invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Subsequent to the closing of this offering, the portfolio will consist of common shares of the following 20 companies:

The preferred shares will be offered at a price of $10.00 per share. The closing price of the preferred shares on the TSX on March 31, 2010 was $10.32. The investment objectives for the preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per preferred share to yield 5.25% per annum on the original issue price, and to return the original issue price to holders of preferred shares at the time of redemption on November 30, 2014.

The class A shares will be offered at a price of $9.75 per share. The closing price of the class A shares on the TSX on March 31, 2010 was $9.95. The investment objectives for the class A shares are to provide their holders with regular monthly cash distributions targeted to be $0.10 per class A share, and to provide the opportunity for growth in net asset value per class A share.

The red-herring prospectus filed on SEDAR does not specify a closing date.

DGS.PR.A was last mentioned on PrefBlog when it was upgraded to Pfd-3 by DBRS. It is not tracked by HIMIPref™ as it is too small an issue to trade efficiently (slightly over 2-million shares outstanding on 2009-12-31, according to the 2009 Annual Report … but that could change!

6 Responses to “DGS.PR.A To Get Bigger”

  1. ChrisC says:

    Too much trouble to get through the entire 1-page press release to the “further information” section? Here’s the relevant excerpt from the press release for you, my ***emphasis***:

    For further information, please contact your financial advisor, call Brompton’s investor relations line at 416-642-
    9051 (toll-free at 1-866-642-6001) or ***** visit our website at http://www.bromptongroup.com *****

    Now I’ve cleared that up I’m off to watch TV or nap or procrastinate on something, or whatever else lazy people do

    Chris, Brompton Funds

  2. jiHymas says:

    I note that the press release is still not posted with other DGS press releases. One looking at the DGS information section is given no information about the treasury offering.

    It is, however, posted here, linked via the corporate front page.

  3. ChrisC says:

    News release in process of being updated, oversight, check back within an hour or so.

    As the order books close end of day this Thursday and given that we are in the process of updating the entire website this week, we’re likely going to stay with just the Brompton Funds home page announcement.

    I assume you now have my email through my blog registration, contact me for clarification in the future if we do anything that appears “lazy” to you, there’s probably another explanation.

  4. jiHymas says:

    Will do! If you should have (or commence!) a press release subscription service, please put me on it; this will improve the timeliness of PrefBlog’s reporting.

    The press release is now linked via the DGS press release page.

  5. ChrisC says:

    You (or anyone else with interest) can sign up for press releases and updates sent to your preferred email address through the “Contact Us” section of our web site:

    http://www.bromptongroup.com/contact_us/

    I’d do it for you but I don’t have your email address and contact details handy, probably easier for you to enter it in yourself.

    Given the focus of this blog you’ll likely most want to tick the boxes for BE (Brompton Equity Split), DGS (Dividend Growth Split), LBS (Life and Banc Split), LCS (Lifeco Split), and SBC (Split Banc Corp).

    You may be peripherally interested in:
    – MBB.un (Manulife Brompton Advantaged Bond Fund), which is long investment grade and high yield corporate bonds, short treasuries and GOCs, and pays ROC distributions;

    and/or

    – FFI.un (Flaherty and Crumrine Investment Grade Fixed Income Fund) which is a fund of US hybrid preferred securities.

  6. […] was last mentioned on PrefBlog when the offering was announced. It is not tracked by HIMIPref™ as it is too small an issue to trade efficiently (slightly over […]

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