Financial 15 Split Corp.
TSX : FTN.PR.A
TSX : FTN

Financial 15 Split Corp.

March 26, 2010 15:35 ET

Financial 15 Split Corp. Announces Additional Public Offering

TORONTO, ONTARIO--(Marketwire - March 26, 2010) - Financial 15 Split Corp. ("Financial 15") is pleased to announce it has filed a short form prospectus in each of the provinces of Canada with respect to an additional offering of Preferred Shares and Class A Shares. The offering will be available through a group of underwriters, co-led by RBC Capital Markets and CIBC World Markets. The Company will file an amended and restated prospectus shortly outlining the offering prices set forth below.

The Preferred Shares will be offered at a price of $10.00 per share to yield 5.25% based on current distribution policy. The closing price of the Preferred Shares on March 25, 2010 on the TMX was $10.41.

The Class A Shares will be offered at a price of $9.75 per share to yield 15.5% based on current distribution policy. The closing price of the Class A Shares on March 25, 2010 on the TMX was $10.40.

The proceeds from the re-opening of Financial 15, net of expenses and Agents' fees, will be used by Financial 15 to invest in an actively managed portfolio of 15 financial services companies made up of 10 Canadian and 5 U.S. issuers as follows:

Bank of America Corp. Great-West Lifeco Inc. Royal Bank of Canada
     
Bank of Montreal Goldman Sachs Group Inc. Sun Life Financial Services
     
Canadian Imperial Bank of Commerce JP Morgan & Chase The Bank of Nova Scotia
     
CI Financial Corp. Manulife Financial Corporation The Toronto-Dominion Bank
     
Citigroup Inc. National Bank of Canada Wells Fargo & Co.

A copy of the preliminary short form prospectus is available from RBC Capital Markets, CIBC World Markets or other members of the syndicate.

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, 2015 (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 $0.12570 per Class A; and
  2. on or about December 1, 2015 (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.

Contact Information

  • Financial 15 Split Corp.
    Investor Relations
    416-304-4443 or Toll Free: 1-877-4-Quadra (1-877-478-2372)
    www.financial15.com