Brompton Split Banc Corp. Completes Treasury Offering
August 25 2022 - 8:43AM
(TSX: SBC, SBC.PR.A) Brompton Split Banc Corp.
(the “Company”) is pleased to announce that it has completed the
previously announced treasury offering of class A shares and
preferred shares (the “Class A Shares” and “Preferred Shares”,
respectively) for aggregate gross proceeds of approximately $51
million. The Class A Shares and Preferred Shares will trade on the
Toronto Stock Exchange (“TSX”) under the existing symbols SBC
(Class A Shares) and SBC.PR.A (Preferred Shares).
The Class A Shares were offered at a price of
$12.20 per Class A Share for a distribution rate of 9.8% on the
issue price, and the Preferred Shares were offered at a price of
$10.00 per Preferred Share for a yield to maturity of 7.9%.(1) 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 per unit of the Company (“Unit”) (calculated as at August 11,
2022), as adjusted for dividends and certain expenses to be accrued
prior to or upon settlement of the offering.
The syndicate of agents for the offering was led
by RBC Capital Markets, CIBC Capital Markets, National Bank
Financial Inc., and Scotiabank and included Hampton Securities
Limited, Canaccord Genuity Corp., BMO Capital Markets, Raymond
James Ltd., TD Securities Inc., iA Private Wealth Inc., Echelon
Wealth Partners Inc., Manulife Securities Incorporated, Research
Capital Corporation and Richardson Wealth Limited.
On March 24, 2022, the Company announced that
the Board of Directors approved an extension of the maturity date
of the Class A and Preferred Shares of the Company for an
additional 5-year term to November 29, 2027 and that the
distribution rate for the Preferred Shares for the extended term
will be announced at least 60 days prior to the current maturity
date being November 29, 2022 and will be based on market yields for
Preferred Shares with similar terms at that time.
The Company invests in a portfolio (the
“Portfolio”) consisting of common shares of the six largest
Canadian banks: Royal Bank of Canada, 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.
About Brompton Funds
Founded in 2000, Brompton is an experienced
investment fund manager with income 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.
(1) See Performance table
below. No cash distributions will be paid on the Class A Shares if,
after the payment of a cash distribution by the Company, the net
asset value per Unit (consisting of 1 Class A Share and 1 Preferred
Share) would be less than $15.00. Yield to maturity for the
Preferred Share is based on maturity date of November 29, 2022.
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 July 31, 2022 |
1-Yr |
3-Yr |
5-Yr |
10-Yr |
S.I. |
Class A Shares (TSX: SBC) |
(6.3 |
%) |
13.0 |
% |
10.6 |
% |
15.4 |
% |
11.1 |
% |
Preferred Shares (TSX: SBC.PR.A) |
5.1 |
% |
5.1 |
% |
5.1 |
% |
4.8 |
% |
5.0 |
% |
Brompton Split Banc Corp. – Unit |
(2.1 |
%) |
9.5 |
% |
8.2 |
% |
10.6 |
% |
8.4 |
% |
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Returns are for the periods ended July 31, 2022
and are unaudited. Inception date November 15, 2005. The table
shows the Company’s compound return on a Class A Share, Preferred
Share and Unit for each period indicated.
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.
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