PrefBlog

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 shares have been priced at $9.65 per class A share and $10.10 per preferred share. The offering prices were determined so as to be non-dilutive to the net asset value per unit of the Company on June 23, 2015, as adjusted for dividends accrued prior to or upon settlement of the offering.

The Company 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 and Scotiabank, and includes TD Securities Inc., 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.

What a joy it is when you can sell fund units valued at 18.93 as of June 23 for 19.75!

LBS.PR.A was last mentioned on PrefBlog when they raised 25.5-million in a similar offering in April. This issue is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

Update, 2015-6-30: Final prospectus filed:

Life & Banc Split Corp. (the “Company”) is pleased to announce that it has filed a final short form prospectus with respect to a treasury offering of up to 1,860,000 class A shares and up to 1,860,000 preferred shares for aggregate gross proceeds of up to approximately $36.7 million.

This entry was posted on Wednesday, June 24th, 2015 at 9:34 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.