SBC.PR.A To Get Bigger

Brompton Split Banc Corp. has announced:

it has filed a preliminary short form prospectus with respect to a treasury offering of Preferred shares and Class A shares.

Brompton Split Banc Corp. invests in the common shares of the six largest Canadian banks with selective covered call writing in order to generate additional distributable income. Currently, the portfolio consists of common shares of:
Bank of Montreal
Royal Bank of Canada
Canadian Imperial Bank of Commerce
The Bank of Nova Scotia
National Bank of Canada
The Toronto-Dominion Bank

The closing price of the Preferred shares on the TSX on October 17, 2012 was $10.22. The investment objectives for the Preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.45 per annum paid in equal quarterly amounts, and to return the original issue price to holders of Preferred shares on the current maturity date of November 29, 2017.

The closing price of the Class A shares on the TSX on October 17, 2012 was $11.34. The investment objectives for the Class A shares are to provide holders with regular monthly cash distributions targeted to be $0.10 and to provide the opportunity for growth in net asset value per Class A share.

The final Class A and Preferred share offering prices will be announced in the final prospectus, and will be set at levels that ensure that existing unitholders are not diluted.

The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC and includes BMO Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., and Mackie Research Capital Corporation.

SBC.PR.A recently announced the details of their term extension.

SBC.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

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