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

Dividend 15 Split Corp.

June 02, 2016 09:43 ET

Dividend 15 Split Corp. Announces Successful Overnight Offering

A high quality portfolio consisting of 15 dividend yielding Canadian Companies

TORONTO, ONTARIO--(Marketwired - June 2, 2016) - Dividend 15 Split Corp. (the "Company") is pleased to announce it has completed the overnight marketing of up to 2,328,000 Preferred Shares and up to 2,328,000 Class A Shares of the Company. The total proceeds of the offering are expected to be approximately $47.7 million.

The offering is being co-led by National Bank Financial Inc., CIBC, RBC Capital Markets, and will also include Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp., Raymond James, Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.

The sales period of the overnight offering has now ended.

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% and the Class A Shares will be offered at a price of $10.50 per Class A Share to yield 11.43%. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on June 1, 2016 was $10.16 and $10.89, respectively.

The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies as follows:

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 5.25% annually; and
  2. on or about the termination date, currently December 1, 2019 (subject to further 5 year extensions thereafter), to pay the holders of the Preferred Shares $10.00 per Preferred Share.

Class A Shares:

  1. to provide holders of the Class A Shares with regular monthly cash dividends currently targeted to be $0.10 per share; and
  2. on or about the termination date, currently December 1, 2019 (subject to further 5 year extensions thereafter) to pay holders of Class A Shares at least the original issue price of those shares.

The Company will today file an amended and restated preliminary short form prospectus, containing important information relating to the Preferred Shares and Class A Shares, with securities commissions or similar authorities in all provinces of Canada. The amended and restated preliminary short form prospectus is still subject to completion or amendment. Copies of the amended and restated preliminary short form prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the underwriters listed above. Investors should read the prospectus before making an investment decision. 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.

Contact Information

  • Dividend 15 Split Corp.
    Investor Relations
    416-304-4443 Toll free at 1-877-4-Quadra (1-877-478-2372)
    www.dividend15.com