TD Securities 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, RBC Capital Markets and will also include Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp. and Raymond James.
The Priority Equity Shares will be offered at a price of $10.20 per Priority Equity Share to yield 5.15% on the issue price and the Class A Shares will be offered at a price of $6.10 per Class A Share to yield 9.83% on the issue price. The closing price on the TSX of each of the Priority Equity Shares and Class A Shares on August 15, 2014 was $10.29 and $6.17, respectively.
Since inception of the Company, the aggregate dividends paid on the Priority Equity Shares have been $3.67 per share and the aggregate dividends paid on the Class A Shares have been $3.05 per share, for a combined total of $6.72. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.
The net proceeds of the secondary offering will be used by the Company to invest in common shares of Toronto-Dominion Bank, a leading Canadian Financial institution.
XTD.PR.A was last mentioned on PrefBlog when it was entered the Protection Plan during the depths of the Credit Crunch.
XTD.PR.A is not tracked by HIMIPref™ since it is too small … but this can always change!
Post and headline corrected to reflect correct ticker, as pointed out by prefQC in the comments
Update, 2014-8-19: The offering was successful:
TDb Split Corp. (the “Company”) is pleased to announce it has completed the overnight marketing of up to 1,500,000 Priority Equity Shares and up to 1,500,000 Class A Shares. Total proceeds of the offering are expected to be approximately $24.45 million.
The Company has granted the dealers an overallotment of 225,000 units if exercised, bringing the total proceeds to $28.1 million
The offering is being co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and also includes Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp. and Raymond James.
The sales period of the overnight offering has now ended.
The Priority Equity Shares will be offered at a price of $10.20 per Priority Equity Share to yield 5.15% on the issue price and the Class A Shares will be offered at a price of $6.10 per Class A Share to yield 9.83% on the issue price. The closing price on the TSX of each of the Priority Equity Shares and Class A Shares on August 18, 2014 was $10.20 and $6.28, respectively.
The net proceeds of the secondary offering will be used by the Company to invest in common shares of Toronto-Dominion Bank, a leading Canadian Financial institution.
According to the TDb Split term sheet, it seems that the symbol is actually XTD.PR.A.
Whoopsee! Right you are – this has been fixed.
Hi James,
Why are there two TD Split “issuers”? TDS.PR.C appears to be TD itself (is this true?) and XTD.PR.A appears to issued by a completely separate (non-TD-approved??) company. Are there other examples of two different split share entities leveraging the same underlying (single) stock?
Do you think it likely that a 5-year extension for TDS.PR.C will also be announced in the near future?
XTD is sponsored by Quadravest. It’s a companion to XCM / YCM and XMF.
TDS is indirectly sponsored by TD, via TD Securities and TD Sponsored Companies.
I can’t think of any other common shares which comprise the underlying of more than one split corp., but there may be some little ones around with which I’m not familiar. Thinking of arbitrage? 🙂
Naturally, there are plenty of very similar underlying portfolios – FTN and FFN, for instance, and LFE / LCS, to name just two pairs.
The previous extension of TDS (the preferred shares were refunded) was announced October 20, 2010 so the next one isn’t due for a while.