/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
TORONTO, May 19, 2020 /CNW/ - (TSX: SBC,
SBC.PR.A) Brompton Split Banc Corp. (the "Company") is
pleased to announce it is undertaking an overnight treasury
offering of class A and preferred shares (the "Class A Shares" and
"Preferred Shares", respectively).
The sales period for this overnight offering will end at
9:00 a.m. (ET) on Wednesday, May 20,
2020. The offering is expected to close on or about
May 27, 2020 and is subject to
certain closing conditions including approval by the Toronto Stock
Exchange ("TSX").
The Class A Shares will be offered at a price of $8.00 per Class A Share for a distribution rate
of 15% on the issue price, and the Preferred Shares will be offered
at a price of $9.60 per Preferred
Share for a yield to maturity of 7.1%.(1) The closing
price on the TSX for each of the Class A and Preferred Shares on
May 15, 2020 was $7.72 and $9.59,
respectively. The Class A Share 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 May 15, 2020), 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: Royal Bank of
Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian
Imperial Bank of Commerce and Bank of Montreal. In addition, the Company may hold up
to 10% of the total assets of the Portfolio in investments in
global financial companies for the purpose of enhanced
diversification and return potential.
The investment objectives for the Class A Shares are to provide
holders with regular monthly cash distributions targeted to be at
least $0.10 per Class A Share and to
provide the opportunity for growth in the net asset value per Class
A Share.
The investment objectives for the Preferred Shares are to
provide holders with fixed cumulative preferential quarterly cash
distributions, currently in the amount of $0.125 per Preferred Share, and to return the
original issue price to holders of Preferred Shares on November 29, 2022.
The syndicate of agents for the offering is being led by RBC
Capital Markets, CIBC Capital Markets, National Bank Financial Inc.
and Scotiabank.
About Brompton Funds
Founded in 2000, Brompton is an experienced investment fund
manager with income focused investment solutions including TSX
traded closed-end funds and exchange-traded 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. No cash distributions will be paid on the Class A Shares if,
after the payment of the distribution by the Company, the net asset
value per Unit (consisting of 1 Class A Share and 1 Preferred
Share) would be less than $15.00.
|
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.
Brompton Split
Banc Corp.
Compound Annual NAV
Returns to April 30, 2020.
|
1-Yr
|
3-Yr
|
5-Yr
|
10-Yr
|
S.I.
|
Class A Shares
(TSX: SBC)
|
(41.0%)
|
(10.2%)
|
(0.8%)
|
5.8%
|
6.5%
|
S&P/TSX Capped
Financials Index
|
(16.6%)
|
(0.6%)
|
3.5%
|
6.9%
|
6.4%
|
S&P/TSX Composite
Index
|
(7.9%)
|
1.3%
|
2.5%
|
5.0%
|
5.3%
|
Preferred Shares
(TSX: SBC.PR.A)
|
5.1%
|
5.0%
|
4.8%
|
4.9%
|
5.1%
|
S&P/TSX Preferred
Share Index
|
(11.2%)
|
(4.3%)
|
(2.0%)
|
1.0%
|
0.8%
|
Brompton Split Banc
Corp. – Unit
|
(22.7%)
|
(3.1%)
|
2.1%
|
5.6%
|
6.0%
|
Returns are for the periods ended April 30, 2020. Inception date November 15, 2005. The table shows the Company's
compound return on a Class A Share, Preferred Share and Unit 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") (together the "Indices"). 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, on a market weight basis, of
preferred shares listed on the TSX that meet the criteria relating
to size, liquidity and issuer rating. The Company passively invests
on an approximately equal weight basis in a portfolio comprised of
six Canadian banks which are both in the Financials Index and the
Composite Index but may hold up to 10% of its assets in global
financial services companies. Since the Indices have more
diversified portfolios, it is not expected that the Company's
performance will mirror that of the Indices. 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.
SOURCE Brompton Split Banc Corp.