LBS.PR.A Closes Treasury Offering

Brompton Group has announced:

Life & Banc Split Corp. (the “Company”) is pleased to announce that it has completed a treasury offering of 1,300,000 class A shares and 1,300,000 preferred shares for aggregate gross proceeds of approximately $25.5 million. The class A shares and preferred shares will continue to trade on the Toronto Stock Exchange under the existing symbols LBS (class A shares) and LBS.PR.A (preferred shares).
The Company invests in a portfolio of common shares of the six largest Canadian banks (“Banks”) and the four major publicly traded Canadian life insurance companies (“Lifecos”). Currently, the portfolio consists of common shares of the following Banks and Lifecos:

The Bank of Nova Scotia Royal Bank of Canada
National Bank of Canada Industrial Alliance Insurance and Financial Services Inc.
The Toronto-Dominion Bank Great-West Lifeco Inc.
Canadian Imperial Bank of Commerce Manulife Financial Corporation
Bank of Montreal Sun Life Financial Inc.

The class A shares were offered at a price of $9.55 and the preferred shares were offered at a price of $10.05. The final class A and preferred share offering prices were determined so as to be non-dilutive to the net asset value per unit of the Company on March 26, 2015, as adjusted for dividends accrued prior to or upon settlement of the offering.

The syndicate of agents for the offering was led by RBC Capital Markets, CIBC, Scotiabank, and TD Securities Inc., and includes BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Haywood Securities Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

Not bad, considering that the April 2 NAVPU was $18.59! I previously reported on the offering.

LBS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

Update, 2015-04-23: Small over-allotment:

Life & Banc Split Corp. (the “Company”) is pleased to announce that it has completed the issuance of 22,000 class A shares and 22,000 preferred shares for aggregate gross proceeds of approximately $0.4 million. The issuance was pursuant to the exercise of the over-allotment option granted to the agents in connection with the Company’s recently completed treasury offering. Following the exercise of the over-allotment option, total gross proceeds raised pursuant to this offering are approximately $25.9 million.

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