E Split Corp. Announces Successful Overnight Offering
08 September 2023 - 3:37PM
Middlefield Group, on behalf of E Split Corp. (TSX: ENS and
ENS.PR.A) (the “Company”), is pleased to announce a successful
overnight treasury offering of class A and preferred shares (the
“Class A Shares” and “Preferred Shares”, respectively). Gross
proceeds of the offering are expected to be approximately $48
million.
The offering is expected to close on or about
Friday, September 15, 2023 and is subject to certain closing
conditions including approval by the Toronto Stock Exchange.
The Class A Shares were offered at a price of
$12.65 per Class A Share to yield 12.3% and the Preferred Shares
were offered at a price of $9.85 per Preferred Share to yield 7.4%
to maturity. 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 September 6, 2023), as adjusted for dividends and certain
expenses to be accrued prior to or upon settlement of the
offering.
In addition, the Company announces that the
third quarter distribution of 2023 will be payable to preferred
shareholders as follows:
Record Date |
Payable Date |
Distribution PerPreferred Share |
September 30, 2023 |
October 13, 2023 |
$0.175 |
The Company invests in common shares of Enbridge
Inc., a North American oil and gas pipeline, gas processing and
natural gas distribution company.
The Company’s investment objectives for the:
Class A Shares are to provide holders with:
- non-cumulative monthly cash distributions; and
- the opportunity for capital appreciation through exposure to
the portfolio
Preferred Shares are to:
- provide holders with fixed cumulative preferential quarterly
cash distributions; and
- return the original issue price of $10.00 to holders upon
maturity.
Middlefield Capital Corporation provides
investment management advice to the Company.
The syndicate of agents for the offering was
co-led by CIBC Capital Markets, RBC Capital Markets, and
Scotiabank, and included Canaccord Genuity Corp., National Bank
Financial Inc., Hampton Securities Limited, BMO Capital Markets,
Raymond James Ltd., TD Securities Inc., iA Private Wealth Inc.,
Desjardins Securities Inc., Manulife Securities Incorporated,
Middlefield Capital Corporation, Research Capital Corporation and
Richardson Wealth Limited.
For further information, please visit our
website at www.middlefield.com or contact Nancy Tham in our Sales
and Marketing Department at 1.888.890.1868.
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 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 of
Canada.
This press release contains forward-looking
information. The forward-looking information contained in this
press release is based on historical information concerning
distributions and dividends paid on the securities of issuers
historically included in the portfolio of the Company. Actual
future results, including the amount of distributions paid by the
Company, may differ from the monthly distribution amount.
Specifically, the income from which distributions are paid may vary
significantly due to: changes in portfolio composition; changes in
distributions and dividends paid by issuers of securities included
in the Company’s portfolio from time to time; there being no
assurance that those issuers will pay distributions or dividends on
their securities; the declaration of distributions and dividends by
issuers of securities included in the portfolio will generally
depend upon various factors, including the financial condition of
each issuer and general economic and stock market conditions; the
level of borrowing by the Company; and the uncertainty of realizing
capital gains. The risks, uncertainties and other factors that
could influence actual results are described under “Risk Factors”
in the Company’s prospectus and other documents filed by the
Company with the Canadian securities regulatory authorities. The
forward-looking information contained in this press release
constitutes the Company’s current estimate, as of the date of this
press release, with respect to the matters covered hereby.
Investors and others should not assume that any forward-looking
statement contained in this press release represents the Company's
estimate as of any date other than the date of this press
release.
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