PrefBlog

Quadravest has announced:

Dividend 15 Split Corp. (the “Company”) is pleased to announce it will undertake an offering of Preferred Shares and Class A Shares of the Company. The offering will be led by National Bank Financial Inc.

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.5% and the Class A Shares will be offered at a price of $7.15 per Class A Share to yield 16.8%.

The closing price on the TSX of each of the Preferred Shares and Class A Shares on February 8, 2021 was $10.33 and
$7.20, respectively.

Since inception of the Company, the aggregate dividends declared on the Preferred Shares have been $8.89 per share and the aggregate dividends declared on the Class A Shares have been $23.30 per share (including five special distributions of $0.25 per share, one special distribution of $0.50 per share and one special stock dividend of $1.75 per share), for a combined total of $32.19 per unit. All distributions paid to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies as follows:

Bank of Montreal	Enbridge Inc.	TC Energy
The Bank of Nova Scotia	Manulife Financial Corp.	TELUS Corporation
BCE Inc.	National Bank of Canada	Thomson Reuters Corp.
Canadian Imperial Bank of Commerce	Royal Bank of Canada	The Toronto-Dominion Bank
CI Financial Corp.	Sun Life Financial Inc.	TransAlta Corporation

Preferred Shares:
i. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the
amount of 5.50% annually; and
ii. on or about the termination date, currently December 1, 2024 (subject to further 5 year extensions thereafter and it has been extended in the past), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

Class A Shares:
i. to provide holders of the Class A Shares with regular monthly cash dividends currently targeted to be $0.10 per
share; and
ii. on or about the termination date, currently December 1, 2024 (subject to further 5 year extensions thereafter and it has been extended in the past) to pay holders of Class A Shares at least the original issue price of those shares.

The sales period of this overnight offering will end at 9:00 a.m. EST on February 10, 2021. The offering is expected to close on or about February 17, 2021 and is subject to certain closing conditions including approval by the TSX.

The NAVPU as of January 29 was 15.54 and Whole Units are being offered at 17.15 so, ignoring interim valuation changes, the premium is 10.4% … not a bad business to be in at all!

Update, 2021-2-17: The offering was very successful:

Dividend 15 Split Corp. (the “Company”) is pleased to announce it has completed the overnight offering of Preferred Shares and Class A Shares of the Company. Total gross proceeds of the offering were $92.2 million, bringing the Company’s net assets to approximately $1.0 billion.

This entry was posted on Tuesday, February 9th, 2021 at 8:08 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.