Life & Banc Split Corp. Completes Treasury Offering
April 04 2019 - 8:43AM
Not for distribution to U.S. newswire services or
for dissemination in the United States.
(TSX: LBS, LBS.PR.A) Life & Banc Split Corp.
(the “Company”) is pleased to announce that it has completed the
previously announced treasury offering of class A shares and
preferred shares (the “Class A Shares” and “Preferred Shares”,
respectively) for aggregate gross proceeds of approximately $25.5
million. The Class A Shares and Preferred Shares will continue to
trade on the Toronto Stock Exchange under the existing symbols LBS
(Class A Shares) and LBS.PR.A (Preferred Shares).
The Class A Shares were offered at a price of
$8.10 per Class A Share for a distribution rate of 14.8% 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 5.46%.(1) The
Class A and Preferred Share offering prices were determined so as
to be non-dilutive to the net asset value per unit of the Company
on March 25, 2019, as adjusted for distributions and certain
expenses to be accrued prior to or upon settlement of the
offering.
The Company invests in a 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 Inc. 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 over $2 billion in assets under
management. Brompton’s investment solutions include TSX-traded
funds and mutual funds. 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
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.
Life & Banc Split Corp. Compound Returns to
Feb. 28, 2019 |
1-Yr |
3-Yr |
5-Yr |
10-Yr |
S.I.(2) |
Class A Shares (TSX: LBS) |
(6.2%) |
23.1% |
10.8% |
33.6% |
8.7% |
S&P/TSX Composite Index |
6.9% |
10.8% |
5.5% |
10.2% |
5.3% |
S&P/TSX Capped Financials Index |
4.0% |
14.1% |
9.2% |
15.5% |
7.6% |
Preferred Shares (TSX: LBS.PR.A) |
5.0% |
4.9% |
4.9% |
5.1% |
5.2% |
S&P/TSX Preferred Share Index |
(7.0%) |
9.6% |
0.3% |
4.2% |
1.6% |
Life & Banc Split Corp. – Unit |
(0.4%) |
12.4% |
7.6% |
14.4% |
6.8% |
(2) Fund Inception date October 17,
2006.
Returns are for the periods ended February 28,
2019. 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.
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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