Brompton Oil Split Corp.

Brompton Oil Split Corp.

February 09, 2015 17:14 ET

Brompton Oil Split Corp. Announces Exchange Ratios

TORONTO, ONTARIO--(Marketwired - Feb. 9, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Brompton Oil Split Corp. (the "Company") has determined the exchange ratios for the exchange option (the "Exchange Option") with respect to its initial public offering. Under the Exchange Option, prospective purchasers could purchase Class A shares of the Company or Units (consisting of one Class A and one Preferred share) by an exchange of freely tradable equity securities ("Exchange Securities") of the issuers listed below (the "Exchange Eligible Issuers"). The Exchange Option expired at 5:00 pm on January 23, 2015.

The following table indicates the adjusted volume weighted average trading price and exchange ratio for the Exchange Securities of each Exchange Eligible Issuer as calculated in the manner described in the Company's prospectus dated January 29, 2015. The adjusted volume weighted average trading price and exchange ratios are rounded to four decimal places. Fractional Class A shares/Units will not be issued.

Exchange Ratio:
Name CUSIP ISIN Adjusted
Volume
Weighted
Average
Trading
Price
Per
Class A
share
Per
Unit
ARC Resources Ltd. (ARX - TSX) 00208D408 CA00208D4084 $23.6264 1.5740 0.9451
Canadian Natural Resources Limited (CNQ - TSX) 136385101 CA1363851017 $38.5569 2.5687 1.5423
ConocoPhillips (COP - NYSE) 20825C104 US20825C1045 $82.9058 5.5220 3.3154
Crescent Point Energy Corp. (CPG - TSX) 22576C101 CA22576C1014 $31.9332 2.1275 1.2773
Cenovus Energy Inc. (CVE - TSX) 15135U109 CA15135U1093 $25.1692 1.6768 1.0068
Chevron Corporation (CVX - NYSE) 166764100 US1667641005 $135.3152 9.0128 5.4113
Encana Corporation (ECA - TSX) 292505104 CA2925051047 $17.2280 1.1478 0.6891
EOG Resources Inc. (EOG - NYSE) 26875P101 US26875P1012 $120.1210 8.0008 4.8037
Husky Energy Inc. (HSE - TSX) 448055103 CA4480551031 $27.7890 1.8514 1.1116
Imperial Oil Limited (IMO - TSX) 453038408 CA4530384086 $50.0869 3.3369 2.0035
PrairieSky Royalty Ltd. (PSK - TSX) 739721108 CA7397211086 $29.8001 1.9853 1.1920
Suncor Energy Inc. (SU - TSX) 867224107 CA8672241079 $38.2398 2.5476 1.5296
Vermilion Energy Inc. (VET - TSX) 923725105 CA9237251058 $56.8601 3.7881 2.2744
Exxon Mobil Corporation (XOM - NYSE) 30231G102 US30231G1022 $114.3042 7.6134 4.5711

The Toronto Stock Exchange has conditionally approved the listing of the Class A and Preferred shares, subject to the Company fulfilling all customary requirements. Trading under the symbols OSP and OSP.PR.A is expected to commence on the closing date, February 24, 2015.

The Company will invest in a portfolio (the "Portfolio") of equity securities of at least 15 large capitalization North American oil and gas issuers selected by Brompton Funds Limited (the "Manager") from the S&P 500 Index and the S&P/TSX Composite Index, giving consideration to, among other metrics, attractive valuation, growth prospects, profitability, liquidity, sustainability of dividends and a strong balance sheet. The Portfolio will be focused primarily on oil and gas issuers that have significant exposure to oil.

The investment objectives for the Class A shares are to provide holders with regular monthly non-cumulative cash distributions targeted to be 8.0% per annum on the $15.00 issue price, and the opportunity for growth in net asset value. The investment objectives for the Preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of 5.0% per annum on the $10.00 issue price, and to return the original issue price on the maturity date, March 31, 2020.

The Manager will also be the portfolio manager of the Company. The Manager currently manages 4 split-share funds with assets under management over $900 million. The portfolio management team will be led by Laura Lau, an award winning portfolio manager with over 20 years of experience in financial services, who has a proven track record in managing flow-through funds and resource assets. The team also includes Michael Clare, an experienced energy and flow-through portfolio manager who specializes in the analysis of crude oil and natural gas markets.

The syndicate of agents for the offering is being led by Scotiabank, CIBC and RBC Capital Markets and includes TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

About Brompton Funds

Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with over $2.2 billion in assets under management. Brompton's investment solutions include TSX listed closed-end funds, mutual funds, hedge funds and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton's investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.

This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the Company. You can find more detailed information about the Company in the public filings available 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 news release and to other matters identified in public filings relating to the Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. 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. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

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