Financial 15 Split Corp.: Successful Overnight Offering Completed
11 January 2014 - 1:27AM
Marketwired
Financial 15 Split Corp.: Successful Overnight Offering Completed
TORONTO, ONTARIO--(Marketwired - Jan 10, 2014) - Financial 15
Split Corp. (the "Company") is pleased to announce it has completed
the overnight marketing of up to 1,531,000 Preferred Shares and up
to 1,531,000 Class A Shares. Total proceeds of the offering are
expected to be approximately $30 million. The Company has granted
the dealers an overallotment of 229,650 units if exercised,
bringing the total proceeds to $34.5 million. The offering was
co-led by National Bank Financial Inc., CIBC World Markets Inc. and
RBC Capital Markets and also included BMO Nesbitt Burns Inc., GMP
Securities L.P. and Canaccord Genuity Corp. The sales period of
this overnight offering has now ended.
The Preferred Shares
were offered at a price of $10.00 per Preferred Share to yield
5.25% and the Class A Shares were offered at a price of $9.60 per
Class A Share to yield 15.71%. The closing price of each of the
Preferred Shares and the Class A Shares on January 9, 2014 on the
TSX was $10.08 and $10.23, respectively.
The proceeds of the
secondary offering, net of expenses and the underwriters' fee, will
be used by the Company to invest in a high quality portfolio
consisting of 15 financial services companies made up of Canadian
and U.S. issuers as follows:
Bank
of Montreal |
|
National Bank of Canada |
Bank
of America Corp. |
|
|
|
|
The
Bank of Nova Scotia |
|
Manulife Financial Corporation |
Citigroup Inc. |
|
|
|
|
Canadian Imperial Bank of Commerce |
|
Sun
Life Financial Services of Canada Inc. |
Goldman Sachs Group Inc. |
|
|
|
|
Royal
Bank of Canada |
|
Great-West Lifeco Inc. |
JP
Morgan Chase & Co. |
|
|
|
|
The
Toronto-Dominion Bank |
|
CI
Financial Corp. |
Wells
Fargo & Co. |
The Company's
investment objectives are:
Preferred
Shares:
- 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
- on or about the termination date, currently December 1, 2015
(the "Termination Date"), to pay the holders of the Preferred
Shares $10.00 per Preferred Share, which was the original issue
price of the Preferred Shares.
Class A Shares:
- to provide holders of the Class A Shares with regular monthly
cash dividends initially targeted to be $0.10 per Class A Share to
yield 8.0% per annum on the original issue price of the Class A
Shares, and currently targeted to be $0.1257 per Class A
Share;
- on or about Termination Date, to pay the holders of Class A
Shares $15.00 per Class A Share, which was the original issue price
of the Class A 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 syndicate members 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.
Financial 15 Split Corp.Investor Relations416-304-4443 or Toll
free at 1-877-4-Quadra (1-877-478-2372)www.financial15.com
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