Financial 15 Split Corp. Announces Overnight Offering
January 06 2021 - 3:40PM
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 World Markets Inc., Scotia Capital Inc. and
RBC Capital Markets, and will also include BMO Capital Markets,
Canaccord Genuity Corp., Industrial Alliance Securities Inc.,
Richardson Wealth Limited, Raymond James Ltd., Desjardins
Securities Inc., Hampton Securities, Mackie Research Capital
Corporation, and Manulife Securities Incorporated.
The Preferred Shares will be offered at a price
of $10.15 per Preferred Share to yield 6.7% and the Class A Shares
will be offered at a price of $9.80 per Class A Share to yield
15.4%.
The closing price on the TSX of each of the
Preferred Shares and the Class A Shares on January 5, 2021 was
$10.45 and $9.66, respectively.
Since inception of the Company, the aggregate
dividends declared on the Preferred Shares have been $9.08 per
share and the aggregate dividends declared on the Class A Shares
have been $20.53 per share, for a combined total of $29.61. 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:
- to provide holders of the Preferred Shares with fixed,
cumulative preferential monthly cash dividends currently in the
amount of 6.75% annually, to be set by the Board of Directors
annually subject to a minimum of 5.50% until 2025; and
- on or about the termination date, currently December 1, 2025
(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, 2025 (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 January 7, 2021. The offering is expected
to close on or about January 14, 2021 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 October 22, 2019 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.
Investor Relations: 1-877-478-2372Local:
416-304-4443www.financial15.cominfo@quadravest.com
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