Financial 15 Split Corp. Increases Preferred Share Rate
September 23 2020 - 9:00AM
Financial 15 Split Corp. (the “Company”) announced previously on
March 2, 2020 it will extend the termination date of the Company a
further five-year period from December 1, 2020 to December 1, 2025.
In connection with the extension, the Company
may amend the prescribed minimum annual rate of cumulative
preferential monthly dividends to be paid to the FTN.PR.A Preferred
Shares (“Preferred Shares”) for the five-year renewal period,
commencing December 1, 2020. The Company may also amend the
dividend entitlement of the Preferred Shares on an annual
basis.
Based on current market rates for preferred
shares with similar terms, the minimum annual rate for the
five-year term will be set at 5.5% (previously 5.25%). The annual
payment rate will be set at 6.75% per annum, based on the $10
repayment value. This is an increase of one and a quarter percent
from the current rate. The Preferred shareholders have received a
total of $8.89 per Share in distributions since inception. The
dividend policy for the FTN Class A Shares (“Class A Shares”) will
remain unchanged.
In relation to the term extension and the
Preferred Share rate increase, the Company has an additional
retraction right for those shareholders not wishing to continue
holding their investment, allowing existing shareholders to tender
one or both classes of Shares and receive a retraction price based
on the November 30, 2020 net asset value per unit. Alternatively,
shareholders may sell their Shares for the market price at any
time, potentially at a higher price than would be achieved through
retraction, or shareholders may take no action and continue to hold
their Shares.
The Company invests in a high quality portfolio
consisting of 15 financial services companies made up of Canadian
and U.S. issuers as follows: Bank of Montreal, The Bank of Nova
Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada,
Toronto-Dominion Bank, National Bank of Canada, Manulife Financial
Corporation, Sun Life Financial, Great-West Lifeco, CI Financial
Corp, Bank of America, Citigroup Inc., Goldman Sachs Group, JP
Morgan Chase & Co. and Wells Fargo & Co.
Certain statements included in this news release
constitute forward-looking statements, including, but not limited
to, those identified by the expressions “expect”, “intend”, “will”
and similar expressions to the extent they relate to the Company.
The forward-looking statements are not historical facts but reflect
the Company’s current expectations regarding future results or
events. These forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results or events
to differ materially from current expectations. Although the
Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. The
Company undertakes no obligation to update publicly or otherwise
revise any forward-looking statement or information whether as a
result of new information, future events or other such factors
which affect this information, except as required by law.
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Investors should
read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance may
not be repeated. Please read the Company’s publicly filed documents
which are available at www.sedar.com.
Investor Relations: 1-877-478-2372 Local:
416-304-4443www.financial15.com info@quadravest.com
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