Life & Banc Split Corp. Announces Successful Overnight Offering
June 20 2018 - 10:39AM
Not for distribution to U.S. newswire services
or for dissemination in the United States.
Life & Banc Split Corp. (the “Company”) (TSX:LBS)
(TSX:LBS.PR.A) is pleased to announce a successful overnight
treasury offering of class A and preferred shares (the “Class A
Shares” and “Preferred Shares”, respectively). Gross proceeds
of the offering are expected to be approximately $50.1 million. The
offering is expected to close on or about July 4, 2018 and is
subject to certain closing conditions including approval by the
Toronto Stock Exchange (the “TSX”). The Company has granted
the Agents (as defined below) an over-allotment option, exercisable
for 30 days following the closing date of the offering, to purchase
up to an additional 15% of the number of Class A Shares and
Preferred Shares issued at the closing of the offering.
The Class A Shares were offered at a price of
$9.80 per Class A Share for a distribution rate of 12.2% on the
issue price, and the Preferred Shares were offered at a price of
$10.00 per Preferred Share for a yield to maturity of 4.9%.(1) The
Class A 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 (calculated as at June 18, 2018), as
adjusted for dividends and certain expenses to be accrued prior to
or upon settlement of the offering.
The Company invests in a portfolio (the
“Portfolio”) consisting of common shares of the six largest
Canadian banks and the four major publicly traded Canadian life
insurance companies:
The
Bank of Nova Scotia |
Royal
Bank of Canada |
National Bank of Canada |
Industrial Alliance Insurance and Financial Services Inc. |
The
Toronto-Dominion Bank |
Great-West Lifeco Inc. |
Canadian Imperial Bank of Commerce |
Manulife Financial Corporation |
Bank
of Montreal |
Sun
Life Financial Inc. |
The syndicate of agents for the offering was led
by RBC Capital Markets, CIBC Capital Markets, National Bank
Financial and Scotiabank and includes BMO Capital Markets, TD
Securities Inc., Canaccord Genuity Corp., GMP Securities L.P.,
Raymond James Ltd., Echelon Wealth Partners Inc., Industrial
Alliance Securities Inc., Desjardins Securities Inc., and Mackie
Research Capital Corporation.
About Brompton Funds
Brompton Funds, a division of Brompton Group
(“Brompton”) which was founded in 2000, is an experienced
investment fund manager with approximately $2 billion in assets
under management. Brompton’s investment solutions include
TSX-traded funds, mutual funds and flow-through limited
partnerships. 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
Life & Banc Split Corp. |
|
|
|
|
|
Compound Annual NAV Returns to May 31, 2018 |
1-Yr |
3-Yr |
5-Yr |
10-Yr |
S.I.(2) |
Class A Shares (TSX: LBS) |
17.9 |
% |
15.7 |
% |
20.4 |
% |
11.6 |
% |
9.8 |
% |
S&P/TSX Composite Index |
7.7 |
% |
5.4 |
% |
8.0 |
% |
3.9 |
% |
5.5 |
% |
S&P/TSX Capped Financials Index |
11.5 |
% |
10.3 |
% |
12.5 |
% |
8.6 |
% |
7.8 |
% |
Preferred Shares (TSX: LBS.PR.A) |
4.9 |
% |
4.9 |
% |
4.9 |
% |
5.1 |
% |
5.2 |
% |
S&P/TSX Preferred Share Index |
7.9 |
% |
3.2 |
% |
1.2 |
% |
3.1 |
% |
2.3 |
% |
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.
Returns are for the periods ended May 31,
2018. The table above shows the Company’s compound return on
a Class A Share and Preferred Share for each period indicated,
compared with the S&P/TSX Capped Financials Index (‘‘Financials
Index’’), the S&P/TSX Composite Index (‘‘Composite Index’’) and
the S&P/TSX Preferred Share Index ("Preferred Index"). The
Financials Index is derived from the Composite Index based on the
financials sector of the Global Industry Classification
Standard. The Composite Index tracks the performance, on a
market weight basis, of a broad index of large-capitalization
issuers listed on the TSX. The Preferred Index tracks the
performance of the Canadian preferred share market. The Company
invests in a passively managed portfolio of four Canadian life
insurance companies and six Canadian banks. The Company is
not expected to mirror the performance of the indices, which have
more diversified portfolios. The indices are 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 Company’s Class A Shares is impacted by the
leverage provided by the Company’s 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.
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