Brompton Lifeco Split Corp. Announces Proposal to Extend Term
11 Dezember 2013 - 11:15PM
Marketwired
Brompton Lifeco Split Corp. Announces Proposal to Extend Term
TORONTO, ONTARIO--(Marketwired - Dec 11, 2013) - Brompton Lifeco
Split Corp. ("LCS" or the "Fund") (TSX:LCS)(TSX:LCS.PR.A) is
pleased to announce that its board of directors (the "Board") has
approved granting shareholders an additional option to allow them
to continue their investment in the Fund beyond its currently
scheduled termination date of April 30, 2014. The proposed
extension will not result in any changes to shareholder redemption
rights and is subject to shareholder approval.
The Class A Shares and Preferred Shares are currently trading at
a combined premium to net asset value per Unit (being one Class A
Share and one Preferred Share) of approximately 3%. By approving
the extension of the Fund, shareholders will have the opportunity
to benefit from potential future trading premiums. In the event
that the proposed extension is not approved by shareholders, the
Fund will terminate and Class A and Preferred shareholders will
receive net asset value per Class A and Preferred Share
respectively.
LCS invests in a portfolio, on an approximately equal weight
basis, of common shares of Canada's 4 largest publicly-listed life
insurance companies: Great-West Lifeco Inc., Industrial Alliance
Insurance and Financial Services Inc., Manulife Financial
Corporation and Sun Life Financial Inc. The 1 year performance to
November 30, 2013 of the Class A Shares and Preferred Shares of the
Fund was 306.8% and 5.4%, respectively, as Canadian life insurance
companies have had strong performance over the period.
Under the proposal:
- The term of LCS will be extended for an additional term of
approximately 5 years to April 29, 2019. In addition, the
termination date may be extended further for successive terms of up
to 5 years thereafter, as determined by the Board;
- Current retraction rights of the Class A shareholders and
Preferred shareholders will not change and shareholders will be
provided with an additional special retraction right providing an
option to retract either Preferred Shares or Class A Shares at the
end of the term (and each successive term thereafter) and receive a
retraction price that is calculated in the same way that such price
would be calculated if the Company were to terminate on April 30,
2014 (or any successive termination date); and
- The distribution rates on the Preferred Shares and distribution
target on the Class A Shares for the new term will be announced at
least 60 days prior to the extension of the term.
LCS will hold a special meeting of holders of Preferred shares
and Class A shares on February 18, 2014 to consider and vote upon
the proposal. Shareholders of record at the close of business on
January 17, 2014 will be provided with the notice of meeting and
management information circular in respect of the meeting and will
be entitled to vote at the meeting. The proposal is also subject to
any required regulatory approvals.
Further details regarding the proposal will be contained in the
management information circular which will be mailed to
shareholders once available. The circular will also be available on
www.sedar.com and posted at www.bromptongroup.com.
About Brompton Funds
Brompton Funds, a division of Brompton Group, is an experienced
investment fund manager operating since 2002. Brompton is focused
on meeting the needs of investors by offering low cost, innovative
products with client friendly terms and supported by strong
corporate governance. 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.
Commissions, trailing commissions, management fees and
expenses all may be associated with investment funds. Please read
the Fund's publicly filed documents which are available from SEDAR
at www.sedar.com. Investment funds are not guaranteed, their values
change frequently and past performance may not be
repeated.
Certain statements contained in this news release constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to matters
disclosed in this press release and to other matters identified in
public filings relating to the Fund, to the future outlook of the
Fund and anticipated events or results and may include statements
regarding the future financial performance of the Fund. 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 for a variety of reasons, including those set forth
below.
Brompton's investor relations line416-642-6000 or toll-free at
1-866-642-6001info@bromptongroup.comwww.bromptongroup.com
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