NPS.PR.A Gets Bigger

Ninepoint Partners announced yesterday:

Canadian Large Cap Leaders Split Corp. (the “Company”) is pleased to announce its intention to undertake an offering of Preferred Shares and Class A Shares of the Company (the “Offering”). The Offering will be led by National Bank Financial Inc.

The Preferred Shares will be offered at a price of $10.70 per Preferred Share and the Class A Shares will be offered at a price of $14.30 per Class A Share. The consolidated last trade price of each of the Preferred Shares and the Class A Shares on August 13, 2026 was $10.80 and $14.67, respectively.

The sales period of the Offering will end at 8:30 a.m. EST on August 14, 2026. The Offering is expected to close on or about August 21, 2026 and is subject to certain closing conditions including approval by the TSX.

The net proceeds of the Offering will be used to invest, on an approximately equally-weighted basis, in a portfolio comprised primarily of equity securities of Canadian Dividend Growth Companies (as defined below), selected by the portfolio manager, that at the time of investment and immediately following each periodic reconstitution and rebalancing: (i) are listed on a Canadian exchange; (ii) pay a dividend; (iii) generally have a market capitalization of at least $10 billion; (iv) have options in respect of its equity securities that, in the opinion of the portfolio manager, are sufficiently liquid to permit the portfolio manager to write options in respect of such securities; and (v) have a history of dividend growth or, in the portfolio manager’s view have high potential for future dividend growth (“Canadian Dividend Growth Companies”).

The investment objectives of the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions of $0.1875 per Preferred Share, representing 7.5% per annum on the original issue price of $10.00 per Preferred Share, until February 28, 2029, subject to extension for successive terms of up to five years as determined by the Company’s board of directors (the “Maturity Date”), and return the original issue price to holders on the Maturity Date.

The investment objectives of the Class A Shares are to provide holders with regular monthly non-cumulative cash distributions targeted to be $0.18 per Class A share representing a yield on the issue price of the Class A Shares of 15.1% per annum on the issue price of $14.30 per Class A Share, and the opportunity for growth in the net asset value per Class A Share.

Today, they announced (but not on their website):

Canadian Large Cap Leaders Split Corp. (the “Company”) is pleased to announce that it has completed the overnight marketing of 1,675,300 Preferred Shares and 1,155,300 Class A Shares of the Company for total gross proceeds of $34,446,500 (the “Offering”). The Offering is being led by National Bank Financial Inc. The sale period of this overnight offering has now ended.

The Offering is expected to close on or about August 21, 2026 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (the “TSX”).

The Preferred Shares are being offered at a price of $10.70 per Preferred Share and the Class A Shares are being offered at a price of $14.30 per Class A Share. The consolidated last trade price of each of the Preferred Shares and the Class A Shares on August 13, 2026 was $10.80 and $14.67, respectively.

The net proceeds of the Offering will be used to invest, on an approximately equally-weighted basis, in a portfolio comprised primarily of equity securities of Canadian Dividend Growth Companies (as defined below), selected by the portfolio manager, that at the time of investment and immediately following each periodic reconstitution and rebalancing: (i) are listed on a Canadian exchange; (ii) pay a dividend; (iii) generally have a market capitalization of at least $10 billion; (iv) have options in respect of its equity securities that, in the opinion of the portfolio manager, are sufficiently liquid to permit the portfolio manager to write options in respect of such securities; and (v) have a history of dividend growth or, in the portfolio manager’s view have high potential for future dividend growth (“Canadian Dividend Growth Companies”).

The investment objectives of the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions of $0.1875 per Preferred Share, representing 7.5% per annum on the original issue price of $10.00 per Preferred Share, until February 28, 2029, subject to extension for successive terms of up to five years as determined by the Company’s board of directors (the “Maturity Date”), and return the original issue price to holders on the Maturity Date.

The investment objectives of the Class A Shares are to provide holders with regular monthly non-cumulative cash distributions targeted to be $0.18 per Class A share representing a yield on the issue price of the Class A Shares of 15.1% per annum on the issue price of $14.30 per Class A Share, and the opportunity for growth in the net asset value per Class A Share.

That’s not bad. Another 1.1-million preferred shares, added to the just-over-three-million currently outstanding makes this a fairly respectably sized issue. I will be tracking it on HIMIPref™.

NPS.PR.A was mentioned on PrefBlog when it was downgraded to Pfd-3 from Pfd-3(high) by DBRS.

Thanks to Yomgui for bringing this to my attention!