5Banc Split Inc.
TSX : FBS.B
TSX : FBS.PR.B

5Banc Split Inc.

December 15, 2006 09:23 ET

5Banc Split Inc. Announces Completion of $280 Million Offering of Class B Capital Shares and Preferred Shares and Redemption of Existing Class A Capital Shares and Preferred Shares

TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2006) - 5Banc Split Inc. (TSX:FBS.B)(TSX:FBS.PR.B)(the "Company") announced today that it has completed its new issue of Class B Capital Shares (the "New Capital Shares") and Class B Preferred Shares (the "New Preferred Shares"), raising gross proceeds of $280 million through the issuance of 14,000,000 New Capital Shares and 14,000,000 New Preferred Shares at prices of $10.00 per New Capital Share and $10.00 per New Preferred Share. 2,841,738 of the New Capital Shares were issued as a result of the election of holders of existing Class A Capital Shares (the "Old Capital Shares") to rollover their Old Capital Shares into New Capital Shares in satisfaction of the redemption price payable for such Old Capital Shares. The New Capital Shares and the New Preferred Shares were offered to the public by a syndicate of agents led by TD Securities Inc. and Scotia Capital Inc.

The New Capital Shares and the New Preferred Shares are listed on the Toronto Stock Exchange under the symbols FBS.B and FBS.PR.B, respectively.

Today, the Company also announced the completion of the redemption of the Old Capital Shares and its Class A Preferred Shares (the "Old Preferred Shares") in accordance with their terms. The Old Capital Shares were redeemed at a price of $76.5588 per share, in cash, or, if the holder had previously elected, by delivery of a pro rata share of the common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank together with a cash amount equal to the holder's pro rata share of the other net assets of the Company. The Old Preferred Shares were redeemed at a price of $25.00 per share, in cash, together with dividends thereon in the amount of $0.34375 which were declared but remained unpaid up to but not including December 15, 2006. The Old Capital Shares and the Old Preferred Shares have been de-listed from the Toronto Stock Exchange.

5Banc Split Inc. was established to generate dividend income for the preferred shares while providing holders of the capital shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank.

Information concerning 5Banc Split Inc. is available on its website at www.tdsponsoredcompanies.com.

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