Brompton Oil Split Corp.

Brompton Oil Split Corp.

January 07, 2015 15:12 ET

Brompton Oil Split Corp. Announces Initial Public Offering

TORONTO, ONTARIO--(Marketwired - Jan. 7, 2015) -

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

Brompton Funds Limited (the "Manager") is pleased to announce that Brompton Oil Split Corp. (the "Company") has filed an amended and restated preliminary prospectus in respect of an initial public offering of preferred shares and class A shares.

The Company will invest in a portfolio (the "Portfolio") of equity securities of at least 15 large capitalization North American oil and gas issuers, as listed below, selected by the Manager from the S&P 500 Index and the S&P/TSX Composite Index giving consideration to 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, and will include equities of the following oil and gas issuers:

ARC Resources Ltd. Chevron Corporation Occidental Petroleum Corporation
Canadian Natural Resources Limited Encana Corporation PrairieSky Royalty Ltd.
ConocoPhillips EOG Resources Inc. Suncor Energy Inc.
Crescent Point Energy Corp. Husky Energy Inc. Vermilion Energy Inc.
Cenovus Energy Inc. Imperial Oil Limited Exxon Mobil Corporation

Prospective purchasers investing in the Company will have the option of paying for shares in cash or by exchanging equity securities of Exchange Eligible Issuers (the "Exchange Option"), as set forth below. Prospective purchasers who utilize the Exchange Option must have their investment advisor deposit their securities of Exchange Eligible Issuers with Equity Financial Trust Co. (the "Exchange Agent") through CDS prior to 5:00 p.m. (Toronto time) on January 23, 2015. Please contact your investment advisor or refer to the prospectus for detailed information on how to participate in the offering by way of either cash purchase or exchange of securities. The Exchange Eligible Issuers include all of the Portfolio issuers, with the exception of Occidental Petroleum Corporation.

Holders of Class A shares will receive the benefits of monthly cash distributions targeted to be 8.0% per annum on the $15.00 issue price, low management fees and the opportunity for growth in net asset value. Holders of preferred shares will receive attractive quarterly distributions of 5.0% per annum on the $10.00 issue price.

Brompton Funds Limited will be the investment fund manager and 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 with 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.

An amended and restated preliminary prospectus containing important information relating to the shares has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The amended and restated preliminary prospectus is still subject to completion or amendment. Copies of the amended and restated preliminary prospectus may be obtained from any of the above-mentioned agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

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 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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