Brompton Group has announced (on June 7):
Global Dividend Growth Split Corp. (the “Company”) has determined the exchange ratios for the exchange option (the “Exchange Option”) with respect to its initial public offering. Under the Exchange Option, prospective purchasers could purchase Class A shares or Units (consisting of one Class A and one Preferred share) of the Company by an exchange of freely tradable equity securities (“Exchange Securities”) of the issuers listed below (the “Exchange Eligible Issuers”). The Exchange Option deadline was 5:00 p.m. on May 24, 2018.
The following table indicates the adjusted volume weighted average trading price (“Adjusted VWAP”) and exchange ratio for the Exchange Securities of each Exchange Eligible Issuer as calculated in the manner described in the Company’s prospectus dated May 23, 2018. The adjusted volume weighted average trading price and exchange ratios are rounded to four decimal places. Fractional Class A shares/Units will not be issued.
Company Name (Exchange Ticker Symbol) |
CUSIP |
ISIN |
Adjusted VWAP (C$ Equiv.) |
Exchange Ratio Per Class A Share |
Exchange Ratio Per Unit |
Global Equities |
APPLE INCORPORATED (AAPL) |
37833100 |
US0378331005 |
$249.4883 |
20.7734 |
11.3404 |
BCE (BCE) |
05534B760 |
CA05534B7604 |
$54.4520 |
4.5339 |
2.4751 |
CARNIVAL CORPORATION (CCL) |
143658300 |
PA1436583006 |
$79.9122 |
6.6538 |
3.6324 |
CISCO SYSTEMS INCORPORATED (CSCO) |
17275R102 |
US17275R1023 |
$56.6722 |
4.7188 |
2.5760 |
ENBRIDGE (ENB) |
29250N105 |
CA29250N1050 |
$40.3859 |
3.3627 |
1.8357 |
HSBC HOLDINGS (HSBC) |
404280406 |
US4042804066 |
$63.6714 |
5.3015 |
2.8942 |
IBM CORPORATION (IBM) |
459200101 |
US4592001014 |
$186.5488 |
15.5328 |
8.4795 |
INTEL CORPORATION (INTC) |
458140100 |
US4581401001 |
$73.4187 |
6.1131 |
3.3372 |
JOHNSON & JOHNSON (JNJ) |
478160104 |
US4781601046 |
$158.4643 |
13.1944 |
7.2029 |
JP MORGAN CHASE & CO. (JPM) |
46625H100 |
US46625H1005 |
$141.7487 |
11.8026 |
6.4431 |
MANULIFE FINANCIAL (MFC) |
56501R106 |
CA56501R1064 |
$24.6940 |
2.0561 |
1.1225 |
NOVARTIS AG (NVS) |
66987V109 |
US66987V1098 |
$97.7830 |
8.1418 |
4.4447 |
PFIZER INCORPORATED (PFE) |
717081103 |
US7170811035 |
$47.2153 |
3.9313 |
2.1462 |
PROCTER & GAMBLE CO. (PG) |
742718109 |
US7427181091 |
$96.5067 |
8.0355 |
4.3867 |
SANOFI SA (SNY) |
80105N105 |
US80105N1054 |
$50.0553 |
4.1678 |
2.2752 |
SUN LIFE FINANCIAL INCORPORATED (SLF) |
866796105 |
CA8667961053 |
$54.4145 |
4.5308 |
2.4734 |
TELUS CORPORATION (T) |
87971M103 |
CA87971M1032 |
$45.4713 |
3.7861 |
2.0669 |
TEXAS INSTRUMENTS INCORPORATED (TXN) |
882508104 |
US8825081040 |
$151.1907 |
12.5887 |
6.8723 |
TORONTO-DOMINION BANK (TD) |
891160509 |
CA8911605092 |
$75.2690 |
6.2672 |
3.4213 |
Other |
ALIMENTATION COUCHE-TARD INCORPORATED (ATD) |
01626P403 |
CA01626P4033 |
$55.1488 |
4.5919 |
2.5068 |
ARC RESOURCES LIMITED (ARX) |
00208D408 |
CA00208D4084 |
$13.0453 |
1.0862 |
0.5930 |
BARRICK GOLD CORPORATION (ABX) |
67901108 |
CA0679011084 |
$16.8209 |
1.4006 |
0.7646 |
BLACKBERRY LIMITED (BB) |
09228F103 |
CA09228F1036 |
$15.6563 |
1.3036 |
0.7117 |
CRESCENT POINT ENERGY CORPORATION (CPG) |
22576C101 |
CA22576C1014 |
$10.0508 |
0.8369 |
0.4569 |
EMERA INCORPORATED (EMA) |
290876101 |
CA2908761018 |
$40.1965 |
3.3469 |
1.8271 |
ENCANA CORPORATION (ECA) |
292505104 |
CA2925051047 |
$15.9743 |
1.3301 |
0.7261 |
FIRST QUANTUM MINERALS LIMITED (FM) |
335934105 |
CA3359341052 |
$21.5054 |
1.7906 |
0.9775 |
FRANCO-NEVADA CORPORATION (FNV) |
351858105 |
CA3518581051 |
$91.7520 |
7.6396 |
4.1705 |
INTER PIPELINE FUND (IPL) |
45833V109 |
CA45833V1094 |
$24.4985 |
2.0398 |
1.1136 |
KINROSS GOLD CORPORATION (K) |
496902404 |
CA4969024047 |
$4.6261 |
0.3852 |
0.2103 |
PEMBINA PIPELINE CORPORATION (PPL) |
706327103 |
CA7063271034 |
$44.7449 |
3.7256 |
2.0339 |
SHAW COMMUNICATIONS INCORPORATED (SJR.B) |
82028K200 |
CA82028K2002 |
$26.5114 |
2.2074 |
1.2051 |
TRANSCANADA CORPORATION (TRP) |
89353D107 |
CA89353D1078 |
$53.9139 |
4.4891 |
2.4506 |
VALEANT PHARMACEUTICALS INTERNATIONAL INCORPORATED (VRX) |
91911K102 |
CA91911K1021 |
$30.8004 |
2.5646 |
1.4000 |
Exchange-Traded Funds |
ISHARES CORE S&P 500 INDEX ETF (XUS) |
46434R109 |
CA46434R1091 |
$44.7166 |
3.7233 |
2.0326 |
ISHARES CORE S&P/TSX CAPPED COMPOSITE INDEX ETF (XIC) |
46430J101 |
CA46430J1012 |
$25.7062 |
2.1404 |
1.1685 |
ISHARES MSCI EAFE INDEX ETF (XIN) |
46428L100 |
CA46428L1004 |
$26.7373 |
2.2263 |
1.2153 |
ISHARES MSCI EUROPE IMI INDEX ETF (XEU) |
46434W108 |
CA46434W1086 |
$24.9395 |
2.0766 |
1.1336 |
ISHARES MSCI WORLD INDEX ETF (XWD) |
46430Y108 |
CA46430Y1088 |
$50.5080 |
4.2055 |
2.2958 |
ISHARES S&P/TSX 60 INDEX ETF (XIU) |
46428D108 |
CA46428D1087 |
$23.9088 |
1.9907 |
1.0868 |
VANGUARD S&P 500 INDEX ETF (VFV) |
92205Y105 |
CA92205Y1051 |
$63.4257 |
5.2811 |
2.8830 |
The Toronto Stock Exchange has conditionally approved the listing of the Class A and Preferred shares, subject to the Company fulfilling all customary requirements. Trading under the symbols GDV and GDV.PR.A is expected to commence on the closing date, June 15, 2018.
The Company will invest in a diversified portfolio (the “Portfolio”) of equity securities of large capitalization global dividend growth companies selected by the Manager. In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least US$10 billion; and (ii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.
The Manager expects that at least 20 global dividend growth companies will comprise the Portfolio. The indicative portfolio includes: Airbus SE, Apple Inc., AstraZeneca plc, BCE Inc., Carnival Corporation, Cisco Systems Inc., Deutsche Post AG, Enbridge Inc., HSBC Holdings plc, Intel Corporation, IBM Corporation, Johnson & Johnson, JP Morgan Chase & Co., Manulife Financial Corporation, Novartis AG, Pfizer Inc., Proctor & Gamble Co., Sanofi SA, Siemens AG, Sun Life Financial Inc., TELUS Corporation, Texas Instruments Inc., Toronto-Dominion Bank, UBS Group AG, and Vinci SA.
The investment objectives for the Class A shares are to provide their holders with regular monthly non-cumulative cash distributions and the opportunity for capital appreciation through exposure to the Portfolio. The monthly cash distribution is targeted to be $0.10 per Class A share representing a yield on the issue price of the Class A shares of 10.0% per annum.
The investment objectives for the Preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders on June 30, 2021, subject to extension for successive terms of up to five years as determined by the board of directors of the Company. The quarterly cash distribution will be $0.1250 per Preferred share ($0.50 per annum, or 5.0% per annum on the issue price of $10.00 per preferred share), until June 30, 2021. The Preferred shares have been provisionally rated Pfd-3 (high) by DBRS Limited.
The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and Scotiabank and includes BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Echelon Wealth Partners., Industrial Alliance Securities Inc., Desjardins Securities Inc., and Mackie Research Capital Corporation.
Today, Brompton announced:
Brompton Funds Limited (the “Manager”) is pleased to announce that Global Dividend Growth Split Corp. (the “Company”) has completed its initial public offering of 3,550,000 Class A shares and 3,550,000 Preferred shares for total gross proceeds of $78.1 million. The Class A and Preferred shares will commence trading today on the Toronto Stock Exchange under the symbols GDV and GDV.PR.A, respectively.
The Company will invest in a diversified portfolio (the “Portfolio”) of equity securities of large capitalization global dividend growth companies selected by the Manager. In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least US$10 billion; and (ii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.
The investment objectives for the Class A shares are to provide their holders with regular monthly non-cumulative cash distributions and the opportunity for capital appreciation through exposure to the Portfolio. The monthly cash distribution is targeted to be $0.10 per Class A share representing a yield on the issue price of the Class A shares of 10.0% per annum.
The investment objectives for the Preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders on June 30, 2021, subject to extension for successive terms of up to five years as determined by the board of directors of the Company. The quarterly cash distribution will be $0.1250 per Preferred share ($0.50 per annum, or 5.0% per annum) on the issue price of $10.00 per Preferred share, until June 30, 2021. The Preferred shares have been provisionally rated Pfd-3 (high) by DBRS Limited.
Brompton Funds Limited acts as the manager and portfolio manager of the Company. The Manager currently manages five split share corporations with combined assets of over $1.3 billion.
The syndicate of agents for the offering was led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and Scotiabank and includes BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Echelon Wealth Partners., Industrial Alliance Securities Inc., Desjardins Securities Inc., and Mackie Research Capital Corporation.
DBRS has finalized the Pfd-3(high) rating:
DBRS Limited (DBRS) finalized the provisional rating of Pfd-3 (high) assigned to the Preferred Shares issued by Global Dividend Growth Split Corp. (the Company). The Company issued an equal number (3,550,000) of the Preferred Shares and the Class A Shares at an issue price of $10.00 per Preferred Share and $12.00 per Class A Share. From to time or during the events of issuance and redemption, the number of the Class A Shares outstanding may exceed the number of the Preferred Shares outstanding. It is expected that such excess will not be more than 10% and the excess of over 10% should not be outstanding for more than 15 days. Both classes of shares are scheduled to mature on June 30, 2021. The term of the Company may be extended beyond the maturity date for additional terms of five years each as determined by the Company’s board of directors.
…
Based on the initial asset coverage of 2.1x, the net asset value of the Company would have to fall by approximately 53% for the holders of the Preferred Shares to be in a loss position. The initial dividend coverage ratio is 0.6x.
GDV.PR.A commenced marketing in late April and issued a final prospectus on May 24. It is a 5% three-year SplitShare and will be tracked by HIMIPref™ but has been relegated to the Scraps subindex on credit concerns.
The issue traded 154,447 shares today in a range of 9.90-00 before closing at 10.00-01. Vital statistics are:
GDV.PR.A |
SplitShare |
YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2021-06-30
Maturity Price : 10.00
Evaluated at bid price : 10.00
Bid-YTW : 4.98 % |
This entry was posted on Friday, June 15th, 2018 at 5:33 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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GDV.PR.A Steady on Good Volume
Brompton Group has announced (on June 7):
Today, Brompton announced:
DBRS has finalized the Pfd-3(high) rating:
GDV.PR.A commenced marketing in late April and issued a final prospectus on May 24. It is a 5% three-year SplitShare and will be tracked by HIMIPref™ but has been relegated to the Scraps subindex on credit concerns.
The issue traded 154,447 shares today in a range of 9.90-00 before closing at 10.00-01. Vital statistics are:
Maturity Type : Hard Maturity
Maturity Date : 2021-06-30
Maturity Price : 10.00
Evaluated at bid price : 10.00
Bid-YTW : 4.98 %
This entry was posted on Friday, June 15th, 2018 at 5:33 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.