Global Champions Split Corp. has announced:
that it has completed its initial public offering of Class A Preferred Shares, Series 1 (the “Series 1 Shares”). The offering raised gross proceeds of $50.0 million, and was offered by a syndicate of agents led by National Bank Financial Inc., CIBC World Markets, RBC Capital Markets, Scotiabank and TD Securities Inc. and includes BMO Capital Markets, Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Macquarie Private Wealth Inc. and Brookfield Financial Corp. (the “Agents”). A total of 2,000,000 Series 1 Shares were issued at a price of $25.00 per Series 1 Share. The Company also announced today that it has completed the issuance of 2,000,000 capital shares of the Company to BAM Investments Corp.
The Company has granted the Agents an over-allotment option to acquire up to an additional 300,000 Series 1 Shares at a price of $25.00 per Series 1 Share for a period of 30 days after closing of the offering which, if exercised in full, would increase the total gross proceeds of the offering to $57.5 million.
The Series 1 Shares have been rated Pfd-2 (low) by DBRS Limited. The Series 1 Shares will commence trading today on the Toronto Stock Exchange under the symbol “GCS.PR.A”.
The Company’s investment objectives with respect to the Series 1 Shares are (i) to provide holders of Series 1 Shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.25 per Series 1 Share to yield 4.00% per annum on the original issue price of the Series 1 Shares and (ii) on or about July 31, 2019, to pay the holders of Series 1 Shares the original issue price of $25.00 of those shares, through the redemption of each Series 1 Share held on July 31, 2019. Such quarterly distributions are expected to be paid by the Company to holders of record on the last Business Day of March, June, September and December in each year with payments being made on or before the 15th day of the following month. The initial distribution will be prorated from today’s date until March 31, 2013 and is expected to be payable on or before April 15, 2013 to holders of record on March 28, 2013. The final prospectus is available on SEDAR at www.sedar.com.
Initially, the Portfolio will consist of 15 large capitalization companies and will be approximately equally weighted on a U.S. dollar equivalent basis.
GCS.PR.A is a SplitShare paying 4.00% (probably) eligible dividends, maturing July 31, 2019, initially reported on PrefBlog on February 15. This issue will be tracked by HIMIPref™ and assigned to the SplitShares subindex. The company’s website is http://globalchampions.com/.
The issue traded 28,150 shares today in a range of 24.76-95 before closing at 24.86-90, 12×40. Vital Statistics are:
| GCS.PR.A | SplitShare | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2019-07-31 Maturity Price : 25.00 Evaluated at bid price : 24.86 Bid-YTW : 4.06 % |
The capital shares don’t seem to be listed yet, and the prospectus available through Sedar was written to the intention of the holders of the preferred shares. Am I right to surmise the capital shares were sold through a private placement?
If so, it looks like the wise money took the full hit of the IPO fees, on top of buying the leveredged portion of the portfolio in a 4-year old bull market. In the end (July 31, 2019), the wise money may very well turn out to be right, but still…
As far as I know, all the Capital Units are being purchased by BAM Investments; so this fund has the same purpose as BNA and the late, lamented CAC.