Brompton Lifeco Split Corp.

Brompton Lifeco Split Corp.

March 30, 2007 14:00 ET

Brompton Lifeco Split Corp. Files Final Prospectus

TORONTO, ONTARIO--(CCNMatthews - March 30, 2007) - Brompton Funds Management Limited (TSX:LCS)(TSX:LCS.PR.A) is pleased to announce that it has filed a Final Prospectus for Brompton Lifeco Split Corp. dated March 28, 2007 in respect of an initial public offering of preferred shares and class A shares for a maximum offering size of up to $200 million. The preferred shares have been provisionally rated Pfd-2(low) by Dominion Bond Rating Service Limited.

Brompton Lifeco Split Corp. has been created to provide investors with a diversified investment in the four largest Canadian life insurance companies, utilizing a split share structure on a low cost basis.

Class A shareholders will receive the benefits of monthly cash distributions targeted to be 6.0% per annum, low management fees and the opportunity for growth in net asset value. Preferred shareholders will receive attractive quarterly distributions of 5.25% per annum supported by the high credit quality of the underlying assets. Highstreet Asset Management Inc. has been retained to selectively write covered call and cash covered put options to generate additional distributable income for the fund.

The Toronto Stock Exchange has conditionally approved the listing of the preferred shares and class A shares subject to Brompton Lifeco Split Corp. fulfilling all of the customary requirements. Trading of preferred shares (ticker symbol LCS.PR.A) and class A shares (ticker symbol LCS) is expected to commence on the date of closing. The offering is scheduled to close on April 18, 2007.

The syndicate of agents for the offering is being co-led by RBC Capital Markets, CIBC World Markets Inc., and Scotia Capital Inc., and includes BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, Raymond James Ltd., Wellington West Capital Inc., Blackmont Capital Inc., IPC Securities Corporation and Research Capital Corporation.

For further information, please contact your financial advisor or visit our website at

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

Contact Information

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