Financial 15 Split Corp. Announces Successful Overnight Offering
May 24 2018 - 9:45AM
Financial 15 Split Corp. (the “Company”) is pleased to announce it
has completed the overnight marketing of up to 5,159,000 Preferred
Shares and up to 5,159,000 Class A Shares of the Company. Total
proceeds of the offering are expected to be approximately $104.2
million.
The offering is being co-led by National Bank
Financial Inc., CIBC World Markets Inc., Scotia Capital Inc. and
RBC Capital Markets, and also includes BMO Capital Markets,
Canaccord Genuity Corp., Industrial Alliance Securities Inc.,
Echelon Wealth Partners, GMP Securities L.P., Raymond James Ltd.,
Desjardins Securities Inc., Mackie Research Capital Corporation,
and Manulife Securities Incorporated.
The sales period of the overnight offering has
now ended.
The offering is expected to close on or about
May 31, 2018 and is subject to certain closing conditions including
approval by the TSX.
The Preferred Shares were offered at a price of
$9.90 per Preferred Share to yield 5.6% and the Class A Shares were
offered at a price of $10.30 per Class A Share to yield 14.6%.
The closing price on the TSX of each of the
Preferred Shares and the Class A Shares on May 23, 2018 was $10.12
and $10.43, respectively.
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:
- to provide holders of the Preferred
Shares with fixed, cumulative preferential monthly cash dividends
currently in the amount of 5.50% annually, to be set by the Board
of Directors annually subject to a minimum of 5.25% until 2020;
and
- 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:
- 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
- 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.
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.
For further information, please contact Financial
15 Split Corp. Investor Relations at 416-304-4443 Toll free at
1-877-4-Quadra (1-877-478-2372) or visit www.financial15.com
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