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

Dividend 15 Split Corp.

September 24, 2013 16:27 ET

Dividend 15 Split Corp. Announces Overnight Secondary Offering

TORONTO, ONTARIO--(Marketwired - Sept. 24, 2013) - 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 National Bank Financial, CIBC World Markets and RBC Capital Markets.

The Class A shares will be offered at a price of $10.75 per share to yield 11.16% and the Preferred Shares will be offered at a price of $10.00 per share to yield 5.25%. The closing price of the Class A Shares on September 23, 2013 on the TSX was $11.32 and the closing price of the Preferred Shares on September 23, 2013 on the TSX was $10.25. Since the Company commenced on March 16, 2004, it has exceeded its distribution objectives. The aggregate dividends paid on Class A shares have been $14.80 per share, representing 113 regular consecutive monthly distributions, plus six special distributions. The Preferred Shares have received a total of $4.96 per share for a combined total distribution of $19.76 per unit paid by the Company. All distributions have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The proceeds of the secondary offering, 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 Corp. Thomson-Reuters 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

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, 2019, 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, 2019, to pay the holders of Class A Shares at least the original issue price of those shares.

The sales period of this overnight offering will end at 8:30 a.m. EST on September 25, 2013.

A copy of the preliminary short form prospectus is available from National Bank Financial, CIBC World Markets and RBC Capital Markets.

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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