DGS.PR.A Gets Bigger

Brompton Group has announced:

Dividend Growth Split Corp. (the “Company”) is pleased to announce a successful overnight treasury offering of class A shares and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively). Gross proceeds of the offering are expected to be approximately $60.2 million. The offering is expected to close on or about September 28, 2021 and is subject to certain closing conditions. The Company has granted the Agents (as defined below) an over-allotment option, exercisable for 30 days following the closing date of the offering, to purchase up to an additional 15% of the number of Class A Shares and Preferred Shares issued at the closing of the offering.

The Class A Shares were offered at a price of $6.70 per Class A Share for a distribution rate of 17.9% on the issue price, and the Preferred Shares were offered at a price of $10.00 per Preferred Share for a yield to maturity of 5.7%.(1) The closing price on the Toronto Stock Exchange (the “TSX”) for each of the Class A Shares and Preferred Shares on September 21, 2021 was $6.70 and $10.12, respectively. The Class A Share 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 (“Unit”) (calculated as at September 20, 2021), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

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, Canaccord Genuity Corp., Hampton Securities Limited, TD Securities Inc., Raymond James Ltd., iA Private Wealth Inc., Echelon Wealth Partners Inc., Richardson Wealth Limited, Manulife Securities Incorporated and Research Capital Corporation.

The Company invests in a portfolio (the “Portfolio”) consisting primarily of equity securities of Canadian dividend growth companies. In addition, the Company may hold up to 20% of the total assets of the Portfolio in global dividend growth companies for diversification and improved return potential, at the discretion of Brompton Funds Limited (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, each dividend growth company included in the Portfolio must have (i) a market capitalization of at least CDN$2.0 billion; and (ii) a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.

7 Responses to “DGS.PR.A Gets Bigger”

  1. mbarbon says:

    Bought some of the prefs at $10.03…..(note: all the distributions are not “eligible dividends”.

  2. gsp says:

    “note: all the distributions are not “eligible dividends””

    What is this affirmation based on? Going back over a decade on the Brompton website, couldn’t find a single distribution that wasn’t characterized as an eligible dividend on DGS.PR.A.

  3. mbarbon says:

    For example, Nov 30, 2020, the “eligible dividend” was 0.10594, and the “ROC” was 0.03156.

    They don’t update the 2021 until after yearend…

  4. gsp says:

    Thanks mbarbon, I now see ROC since 2019 by accessing their website on my iPhone’s Safari browser.

    Earlier I could not get the tax distribution info to load in Chrome on my desktop so went to Firefox which showed no distribution other than eligible dividends. I just confirmed this is still the case with the total amount of distributions not always being accurate.

    It appears Brompton’s website is not playing nice with some platforms. Sorry for questioning your earlier statement.

  5. peet says:

    gsp, not wanting to flog this horse 🙂 but the web site works fine on my desktop Firefox browser:


    Choose DGS.PR.A at the top, then click on the icon labelled “Distributions”, choose the year, and presto.

  6. mbarbon says:

    No problem…
    I have chrome and see it no problem, but almost always use a laptop.
    In my experience, I have seen a fair number of websites that don’t handle the phone well, especially charts/tables.

    The good part, is were all learning and willing to help each other out.
    Its incredible sometimes how just a small tidbit of information can really make a difference…

  7. gsp says:

    Thanks for your info that the Brompton website is working properly for you on both browsers in your own configurations. I will try to get these issues resolved now that I know they aren’t universal, not being able to trust what I see is rather unnerving.

    Seeing as this isn’t a technical support website I won’t bore PrefBlog readers with more of my display issues.

Leave a Reply

You must be logged in to post a comment.