TORONTO, ONTARIO–(Marketwired – April 11, 2017) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Brompton Split Banc Corp. (TSX:SBC)(TSX:SBC.PR.A) (the “Company”) is pleased to announce the details of the previously announced split of its class A shares (the “Share Split”) and provide an update on the concurrent private placement of preferred shares (the “Private Placement”). The Share Split and the Private Placement remain subject to regulatory approval.
The Company is pleased to announce that class A shareholders of record at the close of business on April 25, 2017 will receive 21 additional class A shares for every 100 class A shares held, pursuant to the Share Split. Following the Share Split, class A shareholders will continue to receive the currently targeted monthly distribution of $0.10 per class A share. The Company provides a distribution reinvestment plan, on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.
Pursuant to the Private Placement, 1,382,784 preferred shares were offered to investors at a price of $10.03 per preferred share. Following the Share Split there will be an equal number of class A and preferred shares outstanding. The Private Placement is scheduled to close on April 25, 2017. The preferred share equity coverage, as represented by the class A net asset value (“NAV”), is approximately $13.77 after giving effect to the Share Split(1). This represents downside protection from a decline in the value of the Company’s portfolio of approximately 58%. DBRS has confirmed that the rating of the preferred shares will continue to be Pfd-3 (high) following the completion of the Share Split and the Private Placement.
Since inception in November 2005 to March 31, 2017, the class A shares have delivered a 12.0% per annum total return based on NAV, outperforming the total return of the S&P/TSX Capped Financials Index by 3.5% per annum and the total return of the S&P/TSX Composite Index by 5.6% per annum(2). Since inception, class A shareholders have received cash distributions of $13.25 per class A share.
Over the last five years to March 31, 2017, the preferred shares have delivered a 4.7% per annum total return based on NAV, outperforming the total return of the S&P/TSX Preferred Share Index by 3.5% per annum with lower volatility(2).
Brompton Split Banc Corp. invests in a portfolio, on an approximately equal weight basis, in common shares of 6 Canadian Banks: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank.
About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton’s investment solutions include TSX traded funds, mutual funds, and flow-through limited partnerships. 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.
| (1) | Based on the April 6, 2017 NAV of the class A shares, as used to determine the Share Split ratio. |
| (2) | See Standard Performance Data table below. Source: Brompton, Thomson Reuters, as at March 31, 2017 |
| Brompton Split Banc Corp. | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | Incep. | |||||
| Performance to March 31, 2017 | (16/11/05) | |||||||||
| Class A Shares (TSX:SBC) | 47.2% | 17.0% | 18.7% | 10.0% | 12.0% | |||||
| S&P/TSX Capped Financials Index | 24.3% | 11.0% | 13.3% | 7.0% | 8.5% | |||||
| S&P/TSX Composite Index | 18.6% | 5.8% | 7.8% | 4.7% | 6.4% | |||||
| Preferred Shares (TSX:SBC.PR.A) | 4.6% | 4.6% | 4.7% | 5.0% | 5.1% | |||||
| S&P/TSX Preferred Share Index | 21.9% | 0.6% | 1.2% | n/a | n/a |
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange 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 investment fund 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 funds. You can find more detailed information about the fund in the 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.
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 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. 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.
416-642-6000
Toll-free at 1-866-642-6001
info@bromptongroup.com
www.bromptongroup.com