PrefBlog

On January 26, Brompton Group announced (nb: slight change in table layout … JH):

Brompton Oil Split Corp. (the “Company”) is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares.

The class A shares will be offered at a price of $9.75 for a distribution rate of 12.3% on the issue price, and the preferred shares will be offered at a price of $10.00 for a yield to maturity of 5.2%. The closing price on the Toronto Stock Exchange (“TSX”) for each of the class A and preferred shares on January 25, 2017 was $10.10 and $10.16, respectively. The class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The sales period of this overnight offering will end at 9:00 a.m. (ET) on January 27, 2017. The offering is expected to close on or about February 3, 2017 and is subject to certain closing conditions including approval by the TSX.

The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC and Scotiabank.

The Company invests in a portfolio of equity securities of large capitalization North American oil and gas issuers, primarily focused on those with significant exposure to oil. All portfolio securities are S&P/TSX Composite Index or S&P 500 Index constituents which have a market capitalization of at least $2 billion and pay a dividend. Currently, the portfolio consists of common shares of the following companies:

Anadarko Petroleum Corporation	Cimarex Energy Co.	Whitecap Resources Inc.
Pioneer Natural Resources Company	Apache Corporation	Crescent Point Energy Corporation
PrairieSky Royalty Ltd.	ARC Resources Ltd.	Devon Energy Corporation
Suncor Energy Inc.	Canadian Natural Resources Limited	EOG Resources Inc.
Vermilion Energy Inc.	Cenovus Energy Inc.	Occidental Petroleum Corporation

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 the 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, currently in the amount of $0.1250 per preferred share, and to return the original issue price to holders of preferred shares on the Company’s maturity date (March 31, 2020).

Today they announced:

Brompton Oil Split Corp. (the “Company”) is pleased to announce the results of its overnight treasury offering of class A and preferred shares. Gross proceeds of the offering are expected to be approximately $11 million. The offering is expected to close on or about February 3, 2017 and is subject to customary closing conditions including approval from the Toronto Stock Exchange (the “TSX”).

Well, another $5-million-odd worth on the market won’t solve OSP.PR.A’s liquidity problems, but every little bit helps!

Update, 2017-2-3: Brompton Group has announced:

Brompton Oil Split Corp. (the “Company”) is pleased to announce that it has completed a treasury offering of 549,800 class A shares and 549,800 preferred shares for aggregate gross proceeds of approximately $11 million. The class A shares and preferred shares will trade on the Toronto Stock Exchange (the “TSX”) under the existing symbols OSP (class A shares) and OSP.PR.A (preferred shares).

The class A shares were offered at a price of $9.75 per class A share and the preferred shares were offered at a price of $10.00 per preferred share. The 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 as of the pricing date, as adjusted for dividends and certain expenses accrued prior to closing of the offering.

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