TORONTO, ONTARIO--(Marketwired - Feb. 6, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Dividend Growth Split Corp. (TSX:DGS)(TSX:DGS.PR.A) (the "Company") is pleased to announce that it has completed a treasury offering of 1.95 million class A shares and 1.95 million preferred shares for aggregate gross proceeds of approximately $38.4 million. Shares will continue to trade on the Toronto Stock Exchange under the existing symbols DGS (class A shares) and DGS.PR.A (preferred shares).
Dividend Growth Split Corp. invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Currently, the portfolio consists of common shares of the following 20 companies:
| |
|
|
|
|
|
|
| Great-West Lifeco Inc. |
|
The Bank of Nova Scotia |
|
AGF Management Limited |
|
Shaw Communications Inc. |
| Industrial Alliance Insurance and Financial Services Inc. |
|
Canadian Imperial Bank of Commerce |
|
IGM Financial Inc. |
|
TELUS Corporation |
| Manulife Financial Corporation |
|
National Bank of Canada |
|
Power Corporation of Canada |
|
Canadian Utilities Limited |
| Sun Life Financial Inc. |
|
Royal Bank of Canada |
|
Manitoba Telecom Services Limited |
|
Enbridge Inc. |
| Bank of Montreal |
|
The Toronto-Dominion Bank |
|
Rogers Communications Inc. |
|
TransCanada Corporation |
The class A shares were offered at a price of $9.60 and the preferred shares were offered at a price of $10.10. The final class A and preferred share offering prices were determined so as to be non-dilutive to the most recent calculated net asset value per unit of the Company prior to the filing of the prospectus.
The investment objectives for the class A shares are to provide holders with regular monthly cash distributions, targeted to be $0.10 per class A share, and to provide the opportunity for growth in net asset value.
The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions currently in the amount of $0.13125 per preferred share, representing a yield on the offer price of 5.2% per annum, and to return the original issue price to holders of preferred shares on the maturity date.
On October 1, 2013, the Company announced an extension of the maturity date of the class A and preferred shares of the Company for an additional 5 year term to November 28, 2019, subject to extension for successive terms of up to 5 years. The preferred share dividend rate for the extended term will be announced at least 60 days prior to the original November 30, 2014 maturity date. The new dividend rate will be determined based on then-current market yields for preferred shares with similar terms.
The syndicate of agents for the offering was led by RBC Capital Markets, CIBC, Scotiabank and TD Securities Inc. and includes BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Mackie Research Capital Corporation, and Manulife Securities Incorporated.
About Brompton Funds
Brompton Funds, a division of Brompton Group, is an experienced investment fund manager operating since 2002. Brompton is focused on meeting the needs of investors by offering low cost, innovative products with client friendly terms and supported by strong corporate governance. For further information, please contact your investment advisor, call Brompton's investor relations line at 416-642-6000 / toll-free at 1-866-642-6001 / email info@bromptongroup.com or visit our website at www.bromptongroup.com.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Company's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
This offering is only made by prospectus. A final prospectus containing important detailed information about the securities being offered has been filed. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.