Dividend 15 Split Corp.

Dividend 15 Split Corp.

October 09, 2013 09:32 ET

Dividend 15 Split Corp. Completes Secondary Overnight Offering of $38,400,000

TORONTO, ONTARIO--(Marketwired - Oct. 9, 2013) - Dividend 15 Split Corp. (the "Company") is pleased to announce that it has today completed the overnight offering of 1,866,380 Preferred Shares and 1,866,380 Class A Shares. Total gross proceeds of the offering were $38.4 million(1), bringing the Company's net assets to approx. $357 million. Shares will continue to trade on the Toronto Stock Exchange under the existing symbol DFN (Class A shares) and DFN.PR.A (Preferred Shares).

The Class A shares were offered at a price of $10.75 per share to yield 11.16% and the Preferred Shares were offered at a price of $10.00 per share to yield 5.25% based on the current distribution policy. The offering was co-led by National Bank Financial, CIBC World Markets and RBC Capital Markets and also included BMO Nesbitt Burns Inc. and TD Securities Inc.

The proceeds of the secondary overnight 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

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.

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.

(1) Offering includes public transaction and private placement.

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