TORONTO, ONTARIO–(Marketwired – June 1, 2016) – Dividend 15 Split Corp. (the “Company”) (TSX:DFN)(TSX:DFN.PR.A) is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets, and will also include Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp., Raymond James, Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.
The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% and the Class A Shares will be offered at a price of $10.50 per Class A Share to yield 11.43%. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on May 31, 2016 was $10.16 and $10.87, respectively.
Since inception of the Company, the aggregate dividends declared on the Preferred Shares have been $6.41 per share and the aggregate dividends declared on the Class A Shares have been $18.10 per share (including five special distributions of $0.25 per share, one special distribution of $0.50 per share and one special stock dividend of $1.75 per share), for a combined total of $24.51 per unit. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.
The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies as follows:
| 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 of Commerce | Royal Bank of Canada | TransAlta Corporation | ||
| CI Financial Corp. | Sun Life Financial Inc. | TransCanada Corporation |
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 5.25% annually; and
- on or about the termination date, currently December 1, 2019 (subject to further 5 year extensions thereafter), to pay the holders of the Preferred Shares $10.00 per Preferred Share.
Class A Shares:
- to provide holders of the Class A Shares with regular monthly cash dividends currently targeted to be $0.10 per share; and
- on or about the termination date, currently December 1, 2019 (subject to further 5 year extensions thereafter) to pay holders of Class A Shares at least the original issue price of those shares.
The sales period of this overnight offering will end at 9:00 a.m. EST on June 2, 2016.
A preliminary short form prospectus containing important information relating to the Preferred Shares and the Class A Shares has been filed with securities commissions or similar authorities in all provinces of Canada. The preliminary short form prospectus is still subject to completion or amendment. Copies of the preliminary short form prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the underwriters listed above. There will not be any sale or any acceptance of an offer to buy the Preferred Shares or the Class A Shares until a receipt for the final short form prospectus has been issued.
Investor Relations
416-304-4443 or Toll free at 1-877-4-Quadra (1-877-478-2372)
www.dividend15.com