BROMPTON SPLIT BANC CORP. ANNOUNCES OVERNIGHT OFFERING The sales period for this overnight offering will end at 9:00 a.m. (ET) on Tuesday, September 29, 2020. The offering is
expected to close on or about October 6, 2020 and is subject to certain closing conditions including approval by the Toronto Stock
Exchange (“TSX”).
The Class A Shares will be offered at a price of $9.10 per Class A Share for a distribution rate of 13.2% on the issue price, and the
Preferred Shares will be offered at a price of $9.95 per Preferred Share for a yield to maturity of 5.3%.
(1) The closing price on the
TSX for each of the Class A and Preferred Shares on September 25, 2020 was $9.31 and $10.12, respectively. The Class A Share
and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit
of the Company (“Unit”) (calculated as at September 24, 2020), as adjusted for dividends and certain expenses to be accrued prior
to or upon settlement of the offering.
The Company invests in a portfolio (the “Portfolio”) consisting of common shares of the six largest Canadian banks: Royal Bank
of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of
Commerce and Bank of Montreal. In addition, the Company may hold up to 10% of the total assets of the Portfolio in investments
in global financial companies for the purpose of enhanced diversification and return potential.
The investment objectives for the Class A Shares are to provide holders with regular monthly cash distributions targeted to be at
least $0.10 per Class A Share and to provide the opportunity for growth in the net asset value per Class A Share.
The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash
distributions, currently in the amount of $0.125 per Preferred Share, and to return the original issue price to holders of Preferred
Shares on November 29, 2022.
The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc.