Life & Banc Split Corp T.LBS

Overnight Offering

[wolverine99]

For those of you more educated than I, this is the 2nd Overnight Offering in 2 monts, in October it was Preferred only. Seems a bit odd to have them stacked this close together,is this to cover some Share imbalance or to raise cash in adavance of the increase in Divy to the Preferreds or something else. Thanks in adavance for any insight.

[AnEducator]

Unlike the previous offering, which was conducted to replace all the preferred shares that were retracted due to the extension of the term of the fund, this new offering is an attempt to increase the assets under management for Brompton. Since the capital shares were trading at a sufficient premium to their true value, it created an excellent opportunity for a large offering. This is beneficial

[wolverine99]

Thank you, your "Username" is well earned!

[mouserman]

These offerings are not nearly as popular as they once were. The new ATM sale system selling shares bypasses  the need for underwriters to sell big blocks of shares or units. These underwriters get shares at a discount to the price in the offering, and so can short the commons off the get go and cover with the shares acquired on the cheap.It usually not a bad move  to buy a few days

[wolverine99]

Thanks for your insight MM!

[navgod]

Agreed that these offerings are less frequent. For Brompton funds this reflects the fewer number of their splitshare funds that trade at a sufficient premium to allow an offfering -- only SBC and LBS left. Quadravest  almost exclusively uses ATMs for its dwindling number of eligible funds  -- reflecting their preference for a lack of clarity.  GLTA