Canadian Banc Corp.: Further 3% Increase to Monthly Dividend for Class A Share
January 20 2014 - 9:00AM
Marketwired
Canadian Banc Corp.: Further 3% Increase to Monthly Dividend for
Class A Share
TORONTO, ONTARIO--(Marketwired - Jan 20, 2014) - On September
17, 2013, Canadian Banc Corp. ("the Company") announced a change in
the distribution policy to the Class A shares that resulted in an
immediate increase of over 42% to the monthly dividend. The Company
is pleased to announce a further 3% increase to the monthly
distribution from its previous month's distribution, due to the
increased market price of the Company's Class A share. The dividend
for January will be $0.10150 per share.
Under the new
distribution policy, the monthly dividend payable on the Class A
shares will be determined by applying a 10% annualized rate on the
volume weighted average market price (VWAP) of the Class A shares
over the last 3 trading days of the preceding month. As a result,
Class A shareholders of record on January 31, 2014 will receive a
dividend of $0.10150 per share based on the VWAP of $12.18 over the
last 3 trading days in December, payable on February 10, 2014.
Effectively, the actual amount of monthly distributions paid will
vary with the market price, but the current yield will remain
stable at 10% (based on the VWAP) under this new distribution
policy.
There will be no
changes to the Preferred Share dividend policy or the Class A
dividend threshold policy. Preferred shares will continue to
receive prime plus 0.75% with a minimum rate of 5%.
Since inception
Class A shareholders have received a total of $7.32 per share and
Preferred shareholders have received a total of $4.69 per share
inclusive of this distribution, for a combined total of $12.01 per
unit.
The Company invests
in a portfolio of six publicly traded Canadian Banks as follows:
Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank
of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto-
Dominion Bank. Shares held within the portfolio are expected to
range between 5-20% in weight but may vary at any time. To generate
additional returns above the dividend income earned on the
portfolio, The Company will engage in a selective covered call
writing program.
Distribution Details: |
|
Class
A Share (BK) |
$0.10150 |
Preferred Share (BK.PR.A) |
$0.04167 |
Ex-Dividend Date: |
January 29, 2014 |
Record Date: |
January 31, 2014 |
Payable Date: |
February 10, 2014 |
Canadian Banc Corp.Investor Relations416-304-4443Toll Free:
1-877-4-Quadra (1-877-478-2372),www.primerateplus.com
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