Dividend 15 Split Corp. announced (on 2021-4-26):
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 $10.10 per Preferred Share to yield 5.4% and the Class A Shares will be offered at a price of $8.15 per Class A Share to yield 14.7%. The closing price on the TSX of each of the Preferred Shares and Class A Shares on April 23, 2021 was $10.26 and $8.13, respectively.
Since inception of the Company, the aggregate dividends declared on the Preferred Shares have been $9.03 per share and the aggregate dividends declared on the Class A Shares have been $23.60 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 $32.63 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 April 27, 2021. The offering is expected to close on or about April 30, 2021 and is subject to certain closing conditions including approval by the TSX.
They later announced:
t has completed the overnight marketing of Preferred Shares and Class A Shares of the Company. Total gross proceeds of the offering are expected to be approximately $82,218,750.