{"id":52145,"date":"2026-07-06T22:28:02","date_gmt":"2026-07-07T02:28:02","guid":{"rendered":"https:\/\/prefblog.com\/?p=52145"},"modified":"2026-07-06T22:28:02","modified_gmt":"2026-07-07T02:28:02","slug":"lbs-pr-a-capital-unit-split-preferred-offering","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=52145","title":{"rendered":"LBS.PR.A : Capital Unit Split, Preferred Offering"},"content":{"rendered":"

Brompton Group has announced<\/a> (on 2026-6-18):<\/p>\n

Life & Banc Split Corp. (the \u201cFund\u201d) is pleased to announce its intention to complete a stock split of its class A shares (the \u201cShare Split\u201d) due to the Fund\u2019s strong performance. Class A shareholders of record at the close of business on June 25, 2026 will receive 12 additional class A shares for every 100 class A shares held, pursuant to the Share Split. The Share Split is subject to the approval of the Toronto Stock Exchange (the \u201cTSX\u201d).<\/p>\n

Class A shareholders will continue to receive regular monthly cash distributions targeted to be $0.10 per class A share following the Share Split. As a result, the total dollar amount of distributions to be paid to class A shareholders is expected to increase by approximately 12%. The Fund provides a distribution reinvestment plan, on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.<\/p>\n

Over the last 10 years, the class A shares have delivered a 23.6% per annum total return based on net asset value, significantly outperforming both the S&P\/TSX Capped Financials Total Return Index by 8.4% per annum and the S&P\/TSX Composite Total Return Index by 10.8% per annum.(1) Since inception, class A shareholders have received cash distributions of $21.75 per share.<\/p>\n

Following the completion of the Share Split, the preferred shares of the Fund are expected to have downside protection from a decline in the value of the Fund\u2019s portfolio of approximately 57%.(2)<\/p>\n

The class A shares are expected to commence trading on an ex-split basis at the opening of trading on June 25, 2026. No fractional class A shares will be issued and the number of class A shares each holder shall receive will be rounded down to the nearest whole number. The Share Split is a non-taxable event.<\/p>\n

The Fund invests on an approximately equally weighted basis in a portfolio consisting of common shares of the six largest Canadian banks and the four major publicly traded Canadian life insurance companies:<\/p>\n

\n\n\n\n\n\n\n
Bank of Montreal<\/td>\n Great-West Lifeco Inc.<\/td>\n<\/tr>\n
National Bank of Canada<\/td>\n The Bank of Nova Scotia<\/td>\n<\/tr>\n
Canadian Imperial Bank of Commerce <\/td>\nRoyal Bank of Canada<\/td>\n<\/tr>\n
iA Financial Corporation Inc. <\/td>\nThe Toronto-Dominion Bank<\/td>\n<\/tr>\n
Sun Life Financial Inc. <\/td>\nManulife Financial Corporation<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<\/blockquote>\n

They have now announced<\/a>:<\/p>\n

Life & Banc Split Corp. (the \u201cFund\u201d) is pleased to announce it is undertaking a treasury offering of preferred shares (\u201cPreferred Shares\u201d) (the \u201cOffering\u201d).<\/p>\n

The sales period for this offering is expected to end on Tuesday, July 7, 2026. The offering is expected to close on or about July 14, 2026 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (\u201cTSX\u201d).<\/p>\n

The Preferred Shares will be offered at a price of $10.55 per Preferred Share to yield 6.9%.
\n(1) The closing price on the TSX for the Preferred Shares on July 3, 2026 was $10.64. The offering is being led by RBC Capital Markets.<\/p>\n

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, in the amount of $0.18125 per Preferred Share (7.25% per annum on the original $10.00 issue price), and to return the original issue price to holders of Preferred Shares on October 30, 2028.<\/p>\n

The Fund has declared aggregate dividends on the Preferred Shares of $10.73 per Preferred Share, representing 79 consecutive quarterly dividends since inception on October 17, 2006 to June 30, 2026. Purchasers of Preferred Shares in this Offering will be eligible to receive the full September 2026 quarterly dividend of $0.18125 per Preferred Share when the dividend is declared.<\/p>\n

Based on the most recently calculated net asset value per unit of the Fund on July 2, 2026, the Preferred Shares have downside protection from a decline in the value of the Fund\u2019s portfolio of approximately 58%. The Preferred Shares are rated Pfd-3 by Morningstar DBRS.<\/p>\n

The Fund invests on an approximately equally weighted basis, in a portfolio (the \u201cPortfolio\u201d) consisting of common shares of the six largest Canadian banks and the four major publicly traded Canadian life insurance companies:<\/p>\n

\n\n\n\n\n\n\n
Bank of Montreal<\/td>\n Great-West Lifeco Inc.<\/td>\n<\/tr>\n
National Bank of Canada<\/td>\n The Bank of Nova Scotia<\/td>\n<\/tr>\n
Canadian Imperial Bank of Commerce<\/td>\n Royal Bank of Canada<\/td>\n<\/tr>\n
iA Financial Corporation Inc.<\/td>\n The Toronto-Dominion Bank<\/td>\n<\/tr>\n
Sun Life Financial Inc. <\/td>\nManulife Financial Corporation<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<\/blockquote>\n

This follows the 115-new-for-100-old Capital Unit split<\/a> in April, which was followed by a similar offering<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brompton Group has announced (on 2026-6-18): Life & Banc Split Corp. (the \u201cFund\u201d) is pleased to announce its intention to complete a stock split of its class A shares (the \u201cShare Split\u201d) due to the …<\/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-52145","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/52145","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=52145"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/52145\/revisions"}],"predecessor-version":[{"id":52146,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/52145\/revisions\/52146"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}