Dividend 15 Split Corp.
TSX : DFN
TSX : DFN.PR.A

Dividend 15 Split Corp.

December 02, 2010 10:32 ET

Dividend 15 Split Corp. Announces Additional Public Offering

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2010) - Dividend 15 Split Corp. (the "Company") is pleased to announce that it has filed a short form prospectus in each of the provinces of Canada with respect to an additional offering of Preferred Shares and Class A Shares. The offering will be co-led by RBC Capital Markets and CIBC World Markets.

The Preferred Shares are expected to be offered at a price of $10.00 per share to yield 5.25% based on current distribution policy. The closing price of the Preferred Shares on November 29, 2010 on the TMX was $10.50. The Class A Shares are expected to be offered at a price of $12.00 per share to yield 10.00% based on current distribution policy. The closing price of the Class A Shares on November 29, 2010 on the TMX was $12.57. These prices are subject to adjustment upon the filing of the final prospectus expected to be on December 9th, 2010.

The proceeds from the re-opening of the Company, net of expenses and the Agents' fee, will be used by the Company to invest in an actively managed portfolio of dividend-yielding common shares which includes each of the 15 Canadian companies listed below. These are currently among the highest dividend-yielding securities in the S&P/TSX 60 Index:

Bank of Montreal Enbridge Inc. TELUS Corporation
The Bank of Nova Scotia Manulife Financial Corporation The Thomson Corporation
BCE Inc. National Bank of Canada The Toronto-Dominion Bank
Canadian Imperial Bank of Commerce Royal Bank of Canada TransAlta Corporation
CI Financial Corp. Sun Life Financial Inc. TransCanada Corporation

A copy of the preliminary short form prospectus is available from RBC Capital Markets, CIBC World Markets or other members of the syndicate.

The Company's investment objectives are:

Preferred Shares:

  1. to provide holders of the Preferred Shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price; and
  2. on or about December 1, 2014 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.

Class A Shares:

  1. to provide holders of the Class A Shares with regular monthly cash dividends initially targeted to be $0.10 per Class A; and
  2. on or about December 1, 2014 (termination date), to pay the holders of Class A Shares at least the original issue price of those shares.

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

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