Le Lézard
Classified in: Business

Financial 15 Split Corp. Announces Overnight Offering

TORONTO, ONTARIO--(Marketwired - Nov. 7, 2017) - Financial 15 Split Corp. (the "Company") is pleased to announce it will undertake an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC Capital Markets, Scotia Capital Inc., and RBC Capital Markets and will also include BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp., Industrial Alliance Securities Inc., Raymond James, Echelon Wealth Partners, Mackie Research Capital Corporation, Desjardins Securities Inc., and Manulife Securities Incorporated.

The Preferred Shares will be offered at a price of $9.90 per Preferred Share to yield 5.30% and the Class A Shares will be offered at a price of $10.50 per Class A Share to yield 14.40%.

The closing price on the TSX of each of the Preferred Shares and the Class A Shares on November 6, 2017 was $10.08 and $10.70, respectively.

Since inception of the Company, the aggregate dividends declared on the Preferred Shares have been $7.33 per share and the aggregate dividends paid on the Class A Shares have been $17.14 per share, for a combined total of $24.47. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers as follows:

Bank of Montreal   National Bank of Canada   Bank of America Corp.
The Bank of Nova Scotia   Manulife Financial Corporation   Citigroup Inc.
Canadian Imperial Bank of Commerce   Sun Life Financial Services of Canada Inc.   Goldman Sachs Group Inc.
Royal Bank of Canada   Great-West Lifeco Inc.   JP Morgan Chase & Co.
The Toronto-Dominion Bank   CI Financial Corp.   Wells Fargo & Co.

The Company's investment objectives are:

Preferred Shares:

  1. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends currently in the amount of 5.25% annually, to be set by the Board of Directors annually subject to a minimum of 5.25% until 2020; and
  2. on or about the termination date, currently December 1, 2020 (subject to further 5 year extensions thereafter), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

Class A Shares:

  1. to provide holders of the Class A Shares with regular monthly cash dividends in an amount to be determined by the Board of the Directors; and
  2. to permit holders to participate in all growth in the net asset value of the Company above $10 per Unit, by paying holders on or about the termination date of December 1, 2020 (subject to further 5 year extensions thereafter) such amounts as remain in the Company after paying $10 per Preferred Share.

The sales period of this overnight offering will end at 9:00 a.m. EST on November 8, 2017. The offering is expected to close on or about November 15, 2017 and is subject to certain closing conditions including approval by the TSX.

A prospectus supplement to the Company's short form base shelf prospectus dated November 2, 2017 containing important detailed information about the Preferred Shares and the Class A Shares being offered will be filed with securities commissions or similar authorities in all provinces of Canada. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the agents listed above. 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.

These press releases may also interest you

at 02:29
Today, H&M and Klarna announced that they have expanded their current partnership agreement to also include the US market, in the development of an unrivalled payments and shopping experience across touchpoints. Together, H&M and Klarna are aiming at...

at 02:25
The space in London's famous Building Centre was created jointly by Halton, EDGE, Well FM, Helvar, Clivet, the Building Centre and Tieto Empathic Building, a human centric workspace concept developed by the Nordic IT company Tieto, bearing the joint...

at 02:06
On June 25, Ping An OneConnect, in collaboration with the Insurance Society of China, held AI · Empowerment · Ecology ? The 2nd China Insurance Technology Application Forum in Beijing. Ping An OneConnect, a leading technology service platform for the...

at 02:00
The 2019 Caribbean Investment Summit, held in St Kitts and Nevis between 19 and 22 June, was a crucial event in the citizenship by investment calendar, not least because of its attendees' readiness to address common challenges and discuss potential...

at 02:00
The HIPAA Privacy and Security Summit is a joint effort of Widener University Delaware Law School and First Healthcare Compliance to provide timely updates for professionals serving in healthcare, business, and legal roles. The full-day event will be...

at 02:00
Bracco Imaging S.p.A., a global leader in diagnostic imaging, today announced that it had signed a definitive agreement to acquire Blue Earth Diagnostics, a molecular imaging company based in Oxford, UK. Subject to customary closing conditions,...

News published on 7 november 2017 at 15:33 and distributed by: