TORONTO, ONTARIO--(Marketwired - April 23, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Brompton Lifeco Split Corp. (the "Company") (TSX:LCS)(TSX:LCS.PR.A) is pleased to announce that it has filed a final prospectus with respect to a treasury offering of up to 1,001,100 class A shares and up to 1,264,618 preferred shares for aggregate gross proceeds of up to approximately $19.7 million.
The Company's treasury offering was priced at $7.00 per class A share and $10.00 per preferred share. The final 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 on the date of pricing of the offering, April 16, 2014, as adjusted for dividends and certain expenses accrued prior to or upon settlement of the offering.
Brompton Lifeco Split Corp. invests in a portfolio, on an approximately equal weight basis, of common shares of Canada's four largest publicly-listed life insurance companies: Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.
The investment objectives for the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.075 per class A share and to provide the opportunity for growth in 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 $0.525 per annum until April 30, 2014, and to return the price to holders of preferred shares on the maturity date of the Company. On February 5, 2014, the Company announced an extension of the maturity date to April 29, 2019. The distribution rate on the preferred shares for the term from May 1, 2014 to April 29, 2019 will be $0.575 per preferred share per annum ($0.14375 per quarter). This represents a yield on the $10.00 par value of the preferred shares of 5.75% per annum.
The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC, and Scotiabank, and includes BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., 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.
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.
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.
Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
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.