Dividend Growth Split Corp.
TSX : DGS
TSX : DGS.PR.A

Dividend Growth Split Corp.

April 12, 2010 15:20 ET

Dividend Growth Split Corp. Files Final Prospectus

TORONTO, ONTARIO--(Marketwire - April 12, 2010) -

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) is pleased to announce that it has filed a final short form prospectus for its treasury offering of up to 1,115,000 class A shares and up to 1,115,000 preferred shares for aggregate gross proceeds of up to $22,021,250. The expected closing date is April 19, 2010. 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. Subsequent to the closing of this offering, the portfolio will consist of common shares of the following 20 companies:

AGF Management Limited IGM Financial Inc. Royal Bank of Canada
Bank of Montreal Industrial Alliance Insurance and Financial Services Inc. Shaw Communications Inc.
The Bank of Nova Scotia Manitoba Telecom Services Limited Sun Life Financial Inc.
Canadian Imperial Bank
of Commerce
Manulife Financial Corporation TELUS Corporation
Canadian Utilities Limited National Bank of Canada The Toronto-Dominion Bank
Enbridge Inc. Power Corporation of Canada TransCanada Corporation
Great-West Lifeco Inc. Rogers Communications Inc.  

The preferred shares were offered at a price of $10.00 per share. The investment objectives for the preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per preferred share to yield 5.25% per annum on the original issue price, and to return the original issue price at the time of redemption on November 30, 2014.

The class A shares were offered at a price of $9.75 per share. The investment objectives for the class A shares are to provide their 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 per class A share.

The offering was placed through a group of agents co-led by RBC Dominion Securities Inc. and CIBC World Markets Inc., and included National Bank Financial Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Mackie Research Capital Corporation, Raymond James Ltd., Canaccord Financial Ltd., Dundee Securities Corporation, Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and Wellington West Capital Markets Inc.

For further information, please contact your financial advisor, call Brompton's investor relations line at 416-642-9051 (toll-free at 1-866-642-6001) 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 Fund'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 press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. 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.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    416-642-6008