This thing was 16.01 when Brompton announced that they would have an announcement of the split of their split fund. Enthusiasm is all used up...
Brompton Split Banc Corp. (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 the approval of the Toronto Stock Exchange (the “TSX”).
The Company is pleased to announce that class A shareholders of record at the close of business on December 14,
2021 will receive 25 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. As a result, the Share Split will result in an overall increase in the dollar
amount of distributions to be paid to class A shareholders by approximately 25%. 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, 3,164,203 preferred shares were offered to investors at a price of $10.10 per
preferred share such that following the Share Split there will be an equal number of class A shares and preferred
shares outstanding. The Private Placement is scheduled to close on December 14, 2021. Following the completion
of the Share Split and the Private Placement, the preferred shares are expected to have downside protection from a
decline in the value of the Company’s portfolio of approximately 57%.(1)
Over the last 10 years, the class A shares have delivered a 17.8% per annum total return based on NAV,
outperforming the S&P/TSX Capped Financials Index by 5.1% per annum and the S&P/TSX Composite Index by
9.0% per annum.(2)
Since inception, class A shareholders have received cash distributions of $18.75 per class A
share.
The preferred shares have delivered a 4.9% per annum total return over the last 10 years based on NAV,
outperforming the S&P/TSX Preferred Share Index by 1.5% per annum with lower volatility.(2)
The Company invests, on an approximately equal weighted basis, in a portfolio (the “Portfolio”) consisting of
common shares of the six largest Canadian banks (currently, 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 purposes of enhanced diversification and return potential.