{"id":24798,"date":"2014-03-26T15:50:03","date_gmt":"2014-03-26T20:50:03","guid":{"rendered":"http:\/\/prefblog.com\/?p=24798"},"modified":"2014-03-26T15:50:03","modified_gmt":"2014-03-26T20:50:03","slug":"df-pr-a-to-get-bigger-2","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24798","title":{"rendered":"DF.PR.A To Get Bigger"},"content":{"rendered":"

Quadravest has announced<\/a>:<\/p>\n

Dividend 15 Split Corp. II (the \u201cCompany\u201d) is pleased to announce that it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and will also include BMO Capital Markets, TD Securities Inc., GMP Securities L.P. and Canaccord Genuity Corp.<\/p>\n

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% on the issue price and the Class A Shares will be offered at a price of $8.50 per Class A Share to yield 14.12% on the issue price. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on March 25, 2014 was $10.14 and $9.08, respectively.<\/p>\n

The net proceeds of the secondary offering will be used by the Company to invest in an actively managed portfolio of dividend-yielding common shares which includes each of the 15 Canadian companies listed below:<\/p>\n

\n\n\n\n\n\n\n
Bank of Montreal<\/td>\n Enbridge Inc.<\/td>\n TELUS Corporation<\/td>\n<\/tr>\n
The Bank of Nova Scotia<\/td>\n Manulife Financial Corp.<\/td>\n Thomson-Reuters Corporation<\/td>\n<\/tr>\n
BCE Inc.<\/td>\n National Bank of Canada<\/td>\n The Toronto-Dominion Bank<\/td>\n<\/tr>\n
Canadian Imperial Bank of Commerce<\/td>\n Royal Bank of Canada<\/td>\n TransAlta Corporation<\/td>\n<\/tr>\n
CI Financial Corp.<\/td>\n Sun Life Financial Inc.<\/td>\n TransCanada Corporation<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

The Company\u2019s investment objectives are:
\nPreferred Shares:
\ni. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price; and
\nii. on or about December 1, 2019, to pay the holders of the Preferred Shares the original issue price of those shares.<\/p>\n

Class A Shares:
\ni. to provide holders of the Class A Shares with regular monthly cash dividends initially targeted to be $0.10 per Class A; and
\nii. on or about December 1, 2019, to pay the holders of Class A Shares at least the original issue price of those shares.<\/p>\n

The sales period of this overnight offering will end at 9:00 a.m. (Toronto time) on March 27, 2014.<\/p><\/blockquote>\n

The pricing on this is interesting … as may be seen from the press release, the new units are being offered at a nice discount to market. Discerning investors will, however, note that the NAVPU on March 14 was 16.55<\/a> and that a reasonable proxy, XDV, is up only about 60bp since then<\/a> … so the estimated current NAVPU is about 16.64 and the unit price for the offering is 18.50. Some bargain!<\/p>\n

DF.PR.A was last mentioned on PrefBlog when it got bigger last November<\/a>. DF.PR.A is tracked by HIMIPref\u2122 but is relegated to the Scraps index on credit concerns.<\/p>\n

Update, 2014-4-29<\/b>: On April 10, Quadravest announced<\/a>:<\/p>\n

Dividend 15 Split Corp. II (the \u201cCompany\u201d) is pleased to announce it has completed an overnight offering of 2,225,250 Preferred Shares and 2,225,250 Class A Shares. Total gross proceeds of the offering were $41.2 million, bringing the Company\u2019s net assets to approximately $153.7 million. Shares will trade on the Toronto Stock Exchange under the existing symbol DF.PR.A (Preferred Shares) and DF (Class A shares).<\/p>\n

The Preferred Shares were offered at a price of $10.00 per share to yield 5.25% annually and the Class A Shares were offered at a price of $8.50 per share targeting to yield 14.1%, based on the current distribution policy.<\/p>\n

The offering was co-led by National Bank Financial Inc., CIBC and RBC Capital Markets and also included BMO Capital Markets, TD Securities Inc., GMP Securities L.P. and Canaccord Genuity Corp.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Quadravest has announced: Dividend 15 Split Corp. II (the \u201cCompany\u201d) is pleased to announce that it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering …<\/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-24798","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24798","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=24798"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24798\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}