Brompton Group has announced:
Life & Banc Split Corp. (the “Company”) is pleased to announce it has filed a preliminary short form prospectus with respect to a treasury offering of class A shares and preferred shares. The class A and preferred share offering prices will be set at levels that ensure that existing unitholders are not diluted.
Life & Banc Split Corp. invests in a portfolio of common shares of the six largest Canadian banks (“Banks”) and the four major publicly traded Canadian life insurance companies (“Lifecos”). Currently, the portfolio consists of common shares of the following Banks and Lifecos:
| The Bank of Nova Scotia |
Royal Bank of Canada |
| National Bank of Canada |
Industrial Alliance Insurance and Financial Services Inc. |
| The Toronto-Dominion Bank |
Great-West Lifeco Inc. |
| Canadian Imperial Bank of Commerce |
Manulife Financial Corporation |
| Bank of Montreal |
Sun Life Financial Inc. |
The investment objectives for the class A shares are to provide 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 investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.11875 per preferred share ($0.475 per annum), representing a yield on the original issue price of 4.75% per annum, and to return the original issue price to holders of preferred shares on the maturity date of the Company, November 29, 2018.
The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC, Scotiabank, and TD Securities Inc., and includes BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Haywood Securities Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.
LBS.PR.A last got bigger in November 2013. LBS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.
Update, 2015-3-27: Priced:
Life & Banc Split Corp. (the “Company”) is pleased to announce that the Company’s treasury offering of class A and preferred shares has been priced at $9.55 per class A share and $10.05 per preferred share. The final class A and preferred share offering prices were determined so as to be non-dilutive to the net asset value per unit of the Company on March 26, 2015, as adjusted for dividends accrued prior to or upon settlement of the offering.
That’s a pretty hefty premium to NAV which was 18.74 on March 26. However, the closing price on March 25 was 9.68 for the Capital Units and 10.17 for the preferreds (both are down today, pricing was made public at 11:27am), so it will probably go pretty well.
This entry was posted on Wednesday, March 25th, 2015 at 8:34 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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LBS.PR.A To Get Bigger
Brompton Group has announced:
LBS.PR.A last got bigger in November 2013. LBS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.
Update, 2015-3-27: Priced:
That’s a pretty hefty premium to NAV which was 18.74 on March 26. However, the closing price on March 25 was 9.68 for the Capital Units and 10.17 for the preferreds (both are down today, pricing was made public at 11:27am), so it will probably go pretty well.
This entry was posted on Wednesday, March 25th, 2015 at 8:34 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.