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TORONTO, April 11,
2023 /CNW/ - (TSX: SBC) (TSX: 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, April
12, 2023. The offering is expected to close on or about
April 19, 2023 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 $10.80 per Class A Share for a distribution rate
of 11.1% on the issue price, and the Preferred Shares will be
offered at a price of $9.85 per
Preferred Share for a yield to maturity of 6.7%.(1) The
closing price on the TSX for each of the Class A Shares and
Preferred Shares on April 10, 2023
was $11.01 and $9.87 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 per
unit of the Company ("Unit") (calculated as at April 6, 2023), 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 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.
The investment objectives for the Class A Shares are to provide
holders with regular monthly cash distributions targeted to be at
least $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 $0.15625 per Preferred Share, and to return the
original issue price to holders of Preferred Shares on November 29, 2027.
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, 2027.
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 March 31, 2023
|
1-Yr
|
3-Yr
|
5-Yr
|
10-Yr
|
S.I.
|
Class A Shares (TSX:
SBC)
|
(27.0 %)
|
29.5 %
|
6.4 %
|
12.3 %
|
10.1 %
|
Brompton Split Banc
Corp. – Unit
|
(12.7 %)
|
16.5 %
|
5.9 %
|
9.3 %
|
8.0 %
|
S&P/TSX
Composite Index
|
(5.1 %)
|
18.1 %
|
8.8 %
|
7.9 %
|
6.8 %
|
Preferred Shares
(TSX: SBC.PR.A)
|
5.5 %
|
5.2 %
|
5.2 %
|
4.9 %
|
5.1 %
|
|
|
|
|
|
|
Returns are for the periods ended March 31,
2023 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 and the S&P/TSX Composite Index
("Index"). The Index tracks the performance, on a market weight
basis, of a broad index of large-capitalization issuers listed on
the TSX. The performance of the Company is not expected to mirror
the performance of the Index which has a more diversified
portfolio. The Index is 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 Class A Shares is
impacted by the leverage provided by the 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.