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TORONTO, Aug. 17, 2022 /CNW/ - (TSX: SBC) (TSX: SBC.PR.A) Brompton Split Banc Corp. (the "Company") is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares (the "Class A Shares" and "Preferred Shares", respectively).
The sales period for this overnight offering will end at 9:00 a.m. (ET) on Thursday, August 18, 2022. The offering is expected to close on or about August 25, 2022 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 $12.20 per Class A Share for a distribution rate of 9.8% on the issue price, and the Preferred Shares will be offered at a price of $10.00 per Preferred Share for a yield to maturity of 7.9%.(1) The closing price on the TSX for each of the Class A and Preferred Shares on August 16, 2022 was $12.65 and $9.99, 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 August 11, 2022), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering. The offering is being led by RBC Capital Markets.
SO this one appears to have been done at a premium of around 13 % or so.
This comes just before Brompton announces the distributions for AUgust.
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.