Brompton Split Banc Corp.

TSX : SBC
TSX : SBC.PR.A


Brompton Split Banc Corp.

November 13, 2012 09:29 ET

Brompton Split Banc Corp. Completes Treasury Offering

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2012) -

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

Brompton Split Banc Corp. (TSX:SBC)(TSX:SBC.PR.A) is pleased to announce that it has completed its treasury offering of 1,250,000 class A shares and 1,250,000 preferred shares for aggregate gross proceeds of $26,875,000. Shares will continue to trade on the Toronto Stock Exchange under the existing symbols SBC (class A shares) and SBC.PR.A (preferred shares).

Brompton Split Banc Corp. invests in the common shares of the six largest Canadian banks with selective covered call writing in order to generate additional distributable income. Currently, the portfolio consists of common shares of:

Bank of Montreal Royal Bank of Canada
Canadian Imperial Bank of Commerce The Bank of Nova Scotia
National Bank of Canada The Toronto-Dominion Bank

The preferred shares were offered at a price of $10.25. The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.45 per annum paid in equal quarterly amounts, and to return $10.00 to holders of preferred shares on the current maturity date of November 29, 2017.

The class A shares were offered at a price of $11.25. 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 net asset value per class A share.

The final class A share and preferred share offering prices were determined so as to be non-dilutive to the net asset value per unit of Brompton Split Banc Corp. on the date of pricing, October 26, 2012.

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

About Brompton Funds

Brompton Funds, a division of Brompton Group, is a leading and experienced closed-end fund manager. Brompton is focused on meeting the needs of investors by offering low cost, innovative products with client friendly terms and supported by strong corporate governance. 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.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR 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 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.

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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