Dividend 15 Split Corp.
TSX : DFN
TSX : DFN.PR.A

Dividend 15 Split Corp.

March 10, 2010 15:50 ET

Dividend 15 Split Corp. Files a Final Prospectus for an Offering of $50,400,000

TORONTO, ONTARIO--(Marketwire - March 10, 2010) - Dividend 15 Split Corp. (the "Company") has filed a final prospectus for its secondary offering of 2,400,000 Preferred Shares and 2,400,000 Class A Shares of the Company for aggregate gross proceeds of $50,400,000, bringing the Company's net assets to approximately $273 million. The expected closing date is March 16, 2010. Shares will continue to trade on the Toronto Stock Exchange under the existing symbols DFN (Class A shares) and DFN.PR.A (Preferred shares).

The Preferred Shares were offered at a price of $10.00 per share to yield 5.25% based on current distribution policy. The Class A shares were offered at a price of $11.00 per share to yield 10.91% based on current distribution policy. RBC Capital Markets and CIBC World Markets were co-lead agents for the offering.

The proceeds from the secondary offering of the Company, net of expenses and the Agents' fee, will be used by the Company to invest in an actively managed portfolio of dividend-yielding common shares which includes each of the 15 Canadian companies listed below. These are currently among the highest dividend-yielding securities in the S&P/TSX 60 Index:

Bank of Montreal Enbridge Inc. TELUS Corporation
     
The Bank of Nova Scotia Manulife Financial Corporation The Thomson Corporation
     
BCE Inc. National Bank of Canada The Toronto-Dominion Bank
     
Canadian Imperial Bank of Commerce Royal Bank of Canada TransAlta Corporation
     
CI Financial Corp. Sun Life Financial Inc. TransCanada Corporation

A copy of the final prospectus is available from RBC Capital Markets and CIBC World Markets, or at www.dividend15.com.

The Company's investment objectives are:

Preferred Shares:

  1. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price; and
  2. on or about December 1, 2014 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.

Class A Shares:

  1. to provide holders of the Class A Shares with regular monthly cash dividends initially targeted to be $0.10 per Class A; and
  2. on or about December 1, 2014 (termination date), to pay the holders of Class A Shares at least the original issue price of those shares.

Commissions, trailing commissions management fees and expenses all may be associated with mutual fund investments. Investors should read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

For further information please visit the company's website at www.dividend15.com.

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