{"id":15035,"date":"2011-05-13T14:08:11","date_gmt":"2011-05-13T18:08:11","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=15035"},"modified":"2011-05-13T14:08:11","modified_gmt":"2011-05-13T18:08:11","slug":"dgs-pr-a-private-placement","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=15035","title":{"rendered":"DGS.PR.A: Private Placement"},"content":{"rendered":"<p>Dividend Growth Split Corp <a href=\"http:\/\/www.bromptongroup.com\/\/funds\/dgs\/pdf\/051211.pdf\">has announced<\/a>:<\/p>\n<blockquote><p>that the board of directors has approved a private placement of 468,480 preferred shares at $10.30. The private placement is being made in order to maintain an equal number of outstanding preferred shares and class A shares of Dividend Growth Split Corp. following its merger with Brompton Equity Split Corp.<\/p>\n<p>The closing of the private placement, as well as the merger, is expected to take place on May 18, 2011, subject to regulatory approvals. As a result of the private placement, there will be no requirement for Brompton Equity Split Corp. to redeem any of its class A shares, as more fully described in the joint management information circular of Brompton Equity Split Corp. and Dividend Growth Split Corp. dated March 11, 2011.<\/p>\n<p>Based on the April 28, 2011 net asset values, the class A share exchange ratio for the merger is 1.493584 Dividend Growth Split Corp. class A shares for each Brompton Equity Split Corp. class A share. After giving effect to the private placement and the merger, Dividend Growth Split Corp. will have 6,374,149 class A shares and preferred shares outstanding.<\/p><\/blockquote>\n<p>I find it rather odd that the private placement was necessary: the implication is that a large number of preferred shareholders retracted at $10 rather than selling into the market at a higher price.<\/p>\n<p>DGS.PR.A was last mentioned on PrefBlog when <a href=\"http:\/\/www.prefblog.com\/?p=14711\">the merger and term extension were approved<\/a>. DGS.PR.A is tracked by HIMIPref&trade; but is relegated to the Scraps index on credit concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dividend Growth Split Corp has announced: that the board of directors has approved a private placement of 468,480 preferred shares at $10.30. The private placement is being made in order to maintain an equal number &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-15035","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15035"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/15035\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}