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UNITED STATES./
TORONTO, Feb. 19, 2019 /CNW/ - (TSX: SBC,
SBC.PR.A) Brompton Split Banc Corp. (the "Company") is
pleased to announce it is undertaking an overnight treasury
offering of class A and preferred shares (the "Class A Shares" and
"Preferred Shares", respectively).
The sales period for this overnight offering will end at
9:00 a.m. (ET) on Wednesday, February
20, 2019. The offering is expected to close on or about
March 1, 2019 and is subject to
certain closing conditions including approval by the Toronto Stock
Exchange ("TSX").
The Class A Shares will be offered at a price of $13.55 per Class A Share for a distribution rate
of 8.9% on the issue price, and the Preferred Shares will be
offered at a price of $10.00 per
Preferred Share for a yield to maturity of 5.25%.(1) The
closing price on the TSX for each of the Class A and Preferred
Shares on February 15, 2019 was
$13.60 and $10.18, respectively. The Class A and Preferred
Share offering prices were determined so as to be non-dilutive to
the most recently calculated net asset value per unit of the
Company (calculated as at February 14,
2019), as adjusted for dividends and certain expenses to be
accrued prior to or upon settlement of the offering.
The Company invests in a portfolio (the "Portfolio") consisting
of common shares of the six largest Canadian banks: currently
The Bank of Nova Scotia, National
Bank of Canada, The
Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank
of Montreal. In addition, the
Company may hold up to 10% of the total assets of the Portfolio in
investments in global financial companies for the purpose of
enhanced diversification and return potential.
The investment objectives for the Class A Shares are to provide
holders with regular monthly cash distributions targeted to be
$0.10 per Class A Share and to
provide the opportunity for growth in the net asset value per Class
A Share.
The investment objectives for the Preferred Shares are to
provide holders with fixed cumulative preferential quarterly cash
distributions, currently in the amount of $0.125 per Preferred Share, and to return the
original issue price plus accrued dividends (if any) to holders of
Preferred Shares on November 29,
2022.
The syndicate of agents for the offering is being led by RBC
Capital Markets, CIBC Capital Markets, National Bank Financial Inc.
and Scotiabank.
About Brompton Funds
Brompton Funds, a division of Brompton Group ("Brompton") which
was founded in 2000, is an experienced investment fund manager with
over $2 billion in assets under
management. Brompton's investment solutions include TSX-traded
funds and mutual funds. For further information, please contact
your investment advisor, call Brompton's investor relations line at
416-642-6000 (toll-free at 1-866-642-6001), email
info@bromptongroup.com or visit our website at
www.bromptongroup.com.
(1) See Performance table below.
A short form base shelf prospectus containing important
detailed information about the securities being offered has been
filed with securities commissions or similar authorities in each of
the provinces and territories of Canada. Copies of the short form base shelf
prospectus may be obtained from a member of the syndicate. The
Company intends to file a supplement to the short form base shelf
prospectus, and investors should read the short form base shelf
prospectus and the prospectus supplement before making an
investment decision. There will not be any sale or any acceptance
of an offer to buy the securities being offered until the
prospectus supplement has been filed with the securities
commissions or similar authorities in each of the provinces and
territories of Canada.
You will usually pay brokerage fees to your dealer if you
purchase or sell shares of the Company on the TSX or other
alternative Canadian trading system (an "exchange"). If the
shares are purchased or sold on an exchange, investors may pay more
than the current net asset value when buying shares of the Company
and may receive less than the current net asset value when selling
them.
There are ongoing fees and expenses associated with owning
shares of an investment fund. An investment fund must prepare
disclosure documents that contain key information about the
fund. You can find more detailed information about the
Company in its public filings available at www.sedar.com. The
indicated rates of return are the historical annual compounded
total returns including changes in share value and reinvestment of
all distributions and do not take into account certain fees such as
redemption costs or income taxes payable by any securityholder that
would have reduced returns. Investment funds are not guaranteed,
their values change frequently and past performance may not be
repeated.
Brompton Split
Banc Corp.
Compound Annual NAV
Returns to January 31,
2019.
|
1-Yr
|
3-Yr
|
5-Yr
|
10-Yr
|
S.I.
|
Class A Shares
(TSX: SBC)
|
(23.1%)
|
13.0%
|
10.1%
|
25.1%
|
9.3%
|
S&P/TSX Capped
Financials Index
|
(2.2%)
|
11.9%
|
9.4%
|
13.9%
|
7.9%
|
S&P/TSX Composite
Index
|
0.5%
|
9.8%
|
5.6%
|
9.1%
|
5.9%
|
Preferred Shares
(TSX: SBC.PR.A)
|
5.1%
|
4.8%
|
4.7%
|
5.0%
|
5.1%
|
S&P/TSX Preferred
Share Index
|
(9.8%)
|
7.5%
|
0.1%
|
3.8%
|
1.7%
|
Brompton Split Banc
Corp. – Unit
|
(12.8%)
|
9.4%
|
7.8%
|
13.5%
|
7.3%
|
Returns are for the periods ended January 31, 2019. The table shows the Company's
compound return on a Class A Share and Preferred Share for each
period indicated compared with the S&P/TSX Capped Financials
Index (''Financials Index''), the S&P/TSX Composite Index
(''Composite Index'') and the S&P/TSX Preferred Share Index
("Preferred Index"). The Financials Index is derived from the
Composite Index based on the financials sector of the Global
Industry Classification Standard. The Composite Index tracks the
performance, on a market weight basis, of a broad index of
large-capitalization issuers listed on the TSX. The Preferred Index
tracks the performance of the Canadian preferred share market. The
Company invests in a passively managed portfolio comprised of six
Canadian banks. The Company is not expected to mirror the
performance of the indices, which have more diversified portfolios.
The indices are calculated without the deduction of management
fees, fund expenses and trading commissions, whereas the
performance of the Company is calculated after deducting such fees
and expenses. Further, the performance of the Company's Class A
shares is impacted by the leverage provided by the Company's
Preferred shares.
Certain statements contained in this document constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to matters
disclosed in this document and to other matters identified in
public filings relating to the Company, to the future outlook of
the Company and anticipated events or results and may include
statements regarding the future financial performance of the
Company. In some cases, forward-looking information can be
identified by terms such as "may", "will", "should", "expect",
"plan", "anticipate", "believe", "intend", "estimate", "predict",
"potential", "continue" or other similar expressions concerning
matters that are not historical facts. Actual results may vary from
such forward-looking information. Investors should not place
undue reliance on forward-looking statements. These
forward-looking statements are made as of the date hereof and we
assume no obligation to update or revise them to reflect new events
or circumstances.
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or any applicable exemption from the registration
requirements. This news release does not constitute an offer to
sell or the solicitation of an offer to buy securities nor will
there be any sale of such securities in any state in which such
offer, solicitation or sale would be unlawful.
SOURCE Brompton Split Banc Corp.