TORONTO, ONTARIO--(Marketwired - Jan. 26, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
(TSX:OSP)(TSX:OSP.PR.A) Brompton Oil Split Corp. (the "Company") is pleased to announce it is undertaking an overnight treasury offering of class A and preferred shares.
The class A shares will be offered at a price of $9.75 for a distribution rate of 12.3% on the issue price, and the preferred shares will be offered at a price of $10.00 for a yield to maturity of 5.2%. The closing price on the Toronto Stock Exchange ("TSX") for each of the class A and preferred shares on January 25, 2017 was $10.10 and $10.16, respectively. The class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.
The sales period of this overnight offering will end at 9:00 a.m. (ET) on January 27, 2017. The offering is expected to close on or about February 3, 2017 and is subject to certain closing conditions including approval by the TSX.
The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC and Scotiabank.
The Company invests in a portfolio of equity securities of large capitalization North American oil and gas issuers, primarily focused on those with significant exposure to oil. All portfolio securities are S&P/TSX Composite Index or S&P 500 Index constituents which have a market capitalization of at least $2 billion and pay a dividend. Currently, the portfolio consists of common shares of the following companies:
|Anadarko Petroleum Corporation
||Cimarex Energy Co.
||Pioneer Natural Resources Company
||Crescent Point Energy Corporation
||PrairieSky Royalty Ltd.
|ARC Resources Ltd.
||Devon Energy Corporation
||Suncor Energy Inc.
|Canadian Natural Resources Limited
||EOG Resources Inc.
||Vermilion Energy Inc.
|Cenovus Energy Inc.
||Occidental Petroleum Corporation
||Whitecap Resources Inc.
The investment objectives for the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.10 per class A share and to provide the opportunity for growth in the net asset value per class A share.
The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $0.1250 per preferred share, and to return the original issue price to holders of preferred shares on the Company's maturity date (March 31, 2020).
About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton's investment solutions include TSX listed traded funds, mutual 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 email@example.com or visit our website at www.bromptongroup.com.
A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The Company intends to file a supplement to the short form base shelf prospectus and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the Securities Commissions or similar authorities in each of the provinces and territories of Canada.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Company on the TSX or other alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the Company and may receive less than the current net asset value when selling them.
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 fund. 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 document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document 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. 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.