Dividend 15 Split Corp.: Announces Successful Overnight Offering
25 September 2013 - 4:45PM
Marketwired Canada
Dividend 15 Split Corp. (the "Company") is pleased to announce that it has
completed the overnight marketing of up to 1,866,380 Preferred Shares and up to
1,866,380 Class A Shares. Total proceeds of the offering are expected to be
approximately $38 million(1). Due to strong demand the Company increased the
size of the offering from its original target. The offering was co-led by
National Bank Financial, CIBC World Markets and RBC Capital Markets and also
included BMO Nesbitt Burns Inc. and TD Securities Inc. The sales period of this
overnight offering has now ended.
The Class A shares will be offered at a price of $10.75 per share to yield
11.16% and the Preferred Shares will be offered at a price of $10.00 per share
to yield 5.25%. The closing price of the Class A Shares on September 24, 2013 on
the TSX was $11.40 and the closing price of the Preferred Shares on September
24, 2013 on the TSX was $10.20. Since the Company commenced on March 16, 2004,
it has exceeded its distribution objectives. The aggregate dividends paid on
Class A shares have been $14.80 per share, representing 113 regular consecutive
monthly distributions, plus six special distributions. The Preferred Shares have
received a total of $4.96 per share for a combined total distribution of $19.76
per unit paid by the Company. All distributions have been made in tax advantage
eligible Canadian dividends or capital gains dividends.
The proceeds of the secondary offering, net of expenses and the Agents' fee,
will be used by the Company to invest in an actively managed portfolio of
dividend-yielding common shares which includes each of the 15 Canadian companies
listed below. These are currently among the highest dividend-yielding securities
in the S&P/TSX 60 Index:
Bank of Montreal Enbridge Inc. TELUS Corporation
The Bank of Nova Scotia Manulife Financial Corp. Thomson-Reuters
Corporation
BCE Inc. National Bank of Canada The Toronto-Dominion Bank
Canadian Imperial Bank Royal Bank of Canada TransAlta Corporation
of Commerce
CI Financial Corp. Sun Life Financial Inc. TransCanada Corporation
The Company's investment objectives are:
Preferred Shares:
i. to provide holders of the Preferred Shares with fixed, cumulative
preferential monthly cash dividends in the amount of $0.04375 per
Preferred Share to yield 5.25% per annum on the original issue price;
and
ii. on or about December 1, 2019, to pay the holders of the Preferred Shares
the original issue price of those shares.
Class A Shares:
i. to provide holders of the Class A Shares with regular monthly cash
dividends initially targeted to be $0.10 per Class A; and
ii. on or about December 1, 2019, to pay the holders of Class A Shares at
least the original issue price of those shares.
The Company will today file an amended and restated short form preliminary
prospectus in each of the provinces of Canada with respect to the offering. The
offering is only made by prospectus. The prospectus contains detailed
information about securities being offered. A copy of the amended and restated
preliminary short form prospectus is available from one of the agents listed
above. Investors should read the prospectus before making an investment
decision.
Commissions, trailing commissions, management fees and expenses all may be
associated with mutual fund investments. Investors should read the prospectus
before investing. Mutual funds are not guaranteed, their values change
frequently and past performance may not be repeated.
(1) Offering includes public transaction and private placement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dividend 15 Split Corp.
Investor Relations
416-304-4443
1-877-478-2372
info@dividend15.com
www.dividend15.com
Dividend 15 Split (TSX:DFN.PR.A)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Dividend 15 Split (TSX:DFN.PR.A)
Historical Stock Chart
Von Mai 2023 bis Mai 2024
