LBS.PR.A Life and Banc Split Corp

/Not for distribution to U.S. newswire services or for dissemination in the United States./

TORONTO, June 18, 2024 /CNW/ - (TSX: LBS) (TSX: LBS.PR.A) Life & Banc Split Banc Corp. (the "Fund") 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 "Offering").

The sales period for the Offering is expected to end on Wednesday, June 19, 2024.  The Offering is expected to close on or about June 26, 2024 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 $7.55 per Class A Share for a distribution rate of 15.9% on the issue price. The Preferred Shares will be offered at a price of $10.15 per Preferred Share for a yield to maturity of 7.3%.⁽¹⁾ The closing prices on the TSX for each of the Class A Shares and the Preferred Shares on June 17, 2024 were $7.55 and $10.27, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value ("NAV") per unit of the Company (calculated as at June 13, 2024), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the Offering. The Offering is being led by RBC Capital Markets.

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 in the amount of $0.18125 per Preferred Share ($0.725 per annum) until October 30, 2028, and to return the original issue price to holders of Preferred Shares on October 30, 2028.

Over the last 10 years, the Class A Shares have delivered a 12.6% per annum total return based on NAV, outperforming the S&P/TSX Composite TR Index by 5.1% per annum.⁽¹⁾ The Preferred Shares have returned 5.3% per annum over the last 10 years, outperforming the S&P/TSX Preferred Share TR Index by 2.9% per annum.⁽¹⁾ The Preferred Shares have a DBRS rating of Pfd-3.

The Fund invests in a portfolio consisting of common shares of the six largest Canadian banks and the four major publicly traded Canadian life insurance companies: 

About Brompton Funds

Founded in 2000, Brompton is an experienced investment fund manager with income and growth focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment 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.

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 Fund 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 Fund 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 Fund 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 Fund in its public filings available at www.sedarplus.ca.  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.

Returns are for the periods ended May 31, 2024, and are unaudited. Inception date October 17, 2006. The table shows the compound return on a Class A Share and Preferred Share for each period indicated compared to the S&P/TSX Composite Index ("Composite Index") and the S&P/TSX Preferred Share TR Index ("Preferred Share Index") (together the "Indices"). 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 Share Index tracks the performance, on a market‑weight basis, of a broad index of preferred shares trading on the TSX that meet the criteria relating to size, liquidity and issuer rating. The Fund invests in a passively managed portfolio of four Canadian insurance companies and six Canadian banks. The Fund is not expected to mirror the performance of Indices, which have more diversified portfolios. Further, the indices are calculated without the deduction of management fees, fund expenses and trading commissions, whereas the performance of the Fund is calculated after deducting such fees and expenses. Further, the performance of the Class A Shares is impacted by the leverage provided by the Preferred Shares.

Past performance does not necessarily indicate how the Fund will perform in the future. The information shown is based on the NAV per Class A Share and the redemption price per Preferred Share and assumes that distributions made by the Fund on the Class A Shares and Preferred Shares in the periods shown were reinvested (at the NAV per Class A Share or redemption price per Preferred Share) in additional Class A Shares or Preferred Shares of the Fund.

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 Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. 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 Life & Banc Split Corp.