Brompton Split Banc Corp. Announces Details of Fund Extension
September 26 2012 - 9:44AM
Marketwired
At a special meeting held on March 29, 2012, shareholders of
Brompton Split Banc Corp. (the "Fund") (TSX:SBC)(TSX:SBC.PR.A)
approved a special resolution to allow the Board of Directors to
extend the term of the Class A Shares and the Preferred Shares for
up to 5 years and to determine the distribution rates for the
extended term. The Board of Directors is pleased to announce that
it has approved a 5 year extension to the term of the Class A
Shares and Preferred Shares to November 29, 2017. The Fund was
originally scheduled to terminate on November 30, 2012. The
distribution rate for the Fund's Preferred Shares for this new 5
year term which commences on December 1, 2012 will be $0.45 per
annum paid in equal quarterly amounts. The new Preferred Share
distribution rate is based on current market rates for preferred
shares with similar terms. The Preferred Share distribution for the
quarter ended December 31, 2012 is expected to be $0.12493 per
Preferred Share which takes into account the new distribution rate
for December and the previous distribution rate for October and
November. In addition, the Fund intends to maintain the targeted
monthly Class A Share distribution at $0.10 per Class A Share.
The extension allows shareholders to continue to enjoy the
benefit of the Fund's portfolio of common shares of six Canadian
Banks: Bank of Montreal, Canadian Imperial Bank of Commerce,
National Bank of Canada, Royal Bank of Canada, The Bank of Nova
Scotia and The Toronto-Dominion Bank. Canadian banks have stood out
amongst their global peers as examples of stability over the long
term and through the credit crisis. Canadian banks continue to have
attractive dividend yields and return on equity. As well, the
extension of the term of the Fund is not a taxable event and
enables shareholders to defer potential capital gains tax liability
that would have otherwise been realized on the redemption of the
Class A Shares or Preferred Shares until such time as such shares
are disposed of by shareholders.
In connection with the extension, those shareholders who do not
wish to continue their investment in the Fund, may retract their
Preferred Shares or Class A Shares on November 30, 2012 pursuant to
a special retraction right and receive a retraction price that is
calculated in the same way that such price would be calculated if
the Fund were to terminate on November 30, 2012. The notice expiry
for the special retraction is October 31, 2012 at 5:00 p.m.
(Toronto time).
About Brompton Funds
Brompton Funds, a division of Brompton Group, is a leading and
experienced closed-end fund manager. Brompton is focused on meeting
the needs of investors by offering low cost, innovative products
with client friendly terms and supported by strong corporate
governance. For further information, please contact your investment
advisor, call Brompton's investor relations line at 416-642-9051,
(toll-free at 1-866-642-6001) email info@bromptongroup.com or visit
our website at www.bromptongroup.com.
Commissions, trailing commissions, management fees and expenses
all may be associated with investment funds. Please read the fund's
publicly filed documents which are available from SEDAR at
www.sedar.com. Investment funds are not guaranteed, their values
change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to matters
disclosed in this press release and to other matters identified in
public filings relating to the Fund, to the future outlook of the
Fund and anticipated events or results and may include statements
regarding the future financial performance of the Fund. 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 for a variety of reasons, including those set forth
below.
Contacts: Brompton Split Banc Corp. Investor Relations
416-642-9051 or Toll-Free at 1-866-642-6001info@bromptongroup.com
www.bromptongroup.com
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