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TORONTO, Oct. 06, 2020 (GLOBE NEWSWIRE) -- (TSX: SBC, SBC.PR.A) Brompton Split Banc 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 $23.6 million. The Class A Shares and Preferred Shares will trade on the Toronto Stock Exchange under the existing symbols SBC (Class A Shares) and SBC.PR.A (Preferred Shares).
The Class A Shares were offered at a price of $9.10 per Class A Share for a distribution rate of 13.2% on the issue price, and the Preferred Shares were offered at a price of $9.95 per Preferred Share for a yield to maturity of 5.3%.(1) The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the net asset value per unit of the Company (“Unit”) on September 24, 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. 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. Class A Shares have outperformed the S&P/TSX Composite Index over 10 years by 3.0% p.a. Over 10 years the Preferred Shares have outperformed the S&P/TSX Preferred Share Index by 3.5% p.a.(1)
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., Hampton Securities Limited, Raymond James Ltd., Richardson GMP Limited, Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Desjardins Securities Inc., and Mackie Research Capital Corporation.
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 firstname.lastname@example.org 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 one Class A Share and one Preferred Share) would be less than $15.00.
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 September 30, 2020.
|Class A Shares (TSX: SBC)||(25.8||%)||(5.9||%)||6.6||%||8.8||%||7.9||%|
|S&P/TSX Composite Index||0.0||%||4.2||%||7.1||%||5.8||%||5.9||%|
|Preferred Shares (TSX: SBC.PR.A)||5.1||%||5.1||%||4.9||%||4.9||%||5.1||%|
|S&P/TSX Preferred Share Index||2.8||%||(1.1||%)||4.1||%||1.4||%||1.7||%|
|Brompton Split Banc Corp. – Unit||(13.5||%)||(1.2||%)||6.0||%||7.1||%||6.6||%|
Returns are for the periods ended September 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 Composite Index (“Composite Index”) and the S&P/TSX Preferred Share Index (“Preferred Index”) (together the “Indices”). 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 in 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.