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TORONTO, March 27, 2019 /CNW/ - (TSX: LBS,
LBS.PR.A) Life & Banc Split 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, March
28, 2019. The offering is expected to close on or about April 4, 2019 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 $8.10 per Class A Share for a distribution rate
of 14.8% 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 5.46%.(1) The closing price on the TSX for each of the Class A and
Preferred Shares on March 26, 2019 was $8.23 and $10.17, respectively. The Class A 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 (calculated as at March 25,
2019), 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 and the
four major publicly traded Canadian life insurance companies:
The Bank of Nova Scotia
|
Royal Bank of Canada
|
National Bank of Canada
|
Industrial Alliance Insurance and Financial Services Inc.
|
The Toronto-Dominion Bank
|
Great-West Lifeco Inc.
|
Canadian Imperial Bank of Commerce
|
Manulife Financial Corporation
|
Bank of Montreal
|
Sun Life Financial Inc.
|
The investment objectives for the Class A Shares are to provide holders with regular monthly cash distributions targeted to be
$0.10 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 $0.13625 per Preferred Share ($0.545 per annum), and to return the original issue price plus accrued dividends (if any) to holders of
Preferred Shares on October 30, 2023.
The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial
Inc. and Scotiabank.
About Brompton Funds
Brompton Funds, a division of Brompton Group ("Brompton") which was founded in 2000, is an experienced investment fund manager
with over $2 billion in assets under management. Brompton's investment solutions include TSX-traded
funds and mutual funds.
(1) See Performance table below
A short form base shelf prospectus containing important detailed information about the securities being offered
has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The
Company intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf
prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an
offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or
similar authorities in each of the provinces and territories of Canada.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Company on the TSX or other
alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay
more than the current net asset value when buying shares of the Company and may receive less than the current net asset value
when selling them.
There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must
prepare disclosure documents that contain key information about the fund. You can find more detailed information about the
Company in its public filings available at www.sedar.com. The indicated
rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all
distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder
that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not
be repeated.
Life & Banc Split Corp.
Compound Annual NAV Returns to February 28, 2019
|
1-Yr
|
3-Yr
|
5-Yr
|
10-Yr
|
S.I.(2)
|
Class A Shares (TSX: LBS)
|
(6.2%)
|
23.1%
|
10.8%
|
33.6%
|
8.7%
|
S&P/TSX Composite Index
|
6.9%
|
10.8%
|
5.5%
|
10.2%
|
5.3%
|
S&P/TSX Capped Financials Index
|
4.0%
|
14.1%
|
9.2%
|
15.5%
|
7.6%
|
Preferred Shares (TSX: LBS.PR.A)
|
5.0%
|
4.9%
|
4.9%
|
5.1%
|
5.2%
|
S&P/TSX Preferred Share Index
|
(7.0%)
|
9.6%
|
0.3%
|
4.2%
|
1.6%
|
Life & Banc Split Corp. - Unit
|
(0.4%)
|
12.4%
|
7.6%
|
14.4%
|
6.8%
|
(2) Inception Date: October 17, 2006.
Returns are for the periods ended February 28, 2019. The table above shows the
Company's compound return on a Class A Share and Preferred Share for each period indicated, compared with the S&P/TSX Capped
Financials Index (''Financials Index''), the S&P/TSX Composite Index (''Composite Index'') and the S&P/TSX
Preferred Share Index ("Preferred Index"). The Financials Index is derived from the Composite Index based on the financials
sector of the Global Industry Classification Standard. The Composite Index tracks the performance, on a market weight
basis, of a broad index of large-capitalization issuers listed on the TSX. The Preferred Index tracks the performance of
the Canadian preferred share market. The Company invests in a passively managed portfolio of four Canadian life insurance
companies and six Canadian banks. The Company is not expected to mirror the performance of the indices, which have more
diversified portfolios. The indices are calculated without the deduction of management fees, fund expenses and trading
commissions, whereas the performance of the Company is calculated after deducting such fees and expenses. Further, the
performance of the Company's Class A Shares is impacted by the leverage provided by the Company's Preferred Shares.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to matters disclosed in this document 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.
SOURCE Life & Banc Split Corp.
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