Dividend 15 Split Corp. II

Dividend 15 Split Corp. II

November 16, 2006 10:22 ET

Dividend 15 Split Corp. II Completes Initial Public Offering of $130,000,000

TORONTO, ONTARIO--(CCNMatthews - Nov. 16, 2006) - Dividend 15 Split Corp. II ("Dividend 15 II") (TSX:DF)(TSX:DF.PR.A) has completed its initial public offering of 5,200,000 Preferred Shares and 5,200,000 Class A Shares of the Corporation for aggregate gross proceeds of $130,000,000. The shares have begun trading on the Toronto Stock Exchange under the symbols DF (Class A shares) and DF.PR.A (Preferred shares).

Dividend 15 II's Class A Shares offer regular monthly cash dividends targeted to be 8% per annum, with the objective of repaying their original issue price upon termination. The Class A shares will also provide holders with any capital appreciation or dividend growth achieved in the investment portfolio.

Dividend 15 II's Preferred Shares offer fixed, cumulative preferential monthly cash dividends at a yield of 5.25% per annum, with the objective of repaying their original issue price upon termination.

The net proceeds from the proposed offering will be used by Dividend 15 II to invest in a diversified blue-chip portfolio with some of the highest quality Canadian companies as follows:

Bank of Montreal Bank National Bank of Canada
The Bank of Nova Scotia CI Financial
Canadian Imperial Bank of Commerce BCE Inc.
Royal Bank of Canada Manulife Financial Corporation
The Toronto Dominion Enbridge Inc.

Sun Life Financial Inc.
TELUS Corporation
The Thomson Corporation
TransAlta Corporation
TransCanada Corporation

Shares held within the Portfolio will generally represent no less than 4%
and no more than 8% of the net asset value.

To supplement the dividends received on the portfolio and reduce risk, Dividend 15 II will from time to time write covered call options.

CIBC World Markets Inc. and RBC Dominion Securities Inc. are co-lead agents for the offering. The other members of the syndicate are TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Dundee Securities Corporation, Raymond James Ltd., Bieber Securities Inc., Blackmont Capital Inc., Laurentian Bank Securities Inc. and Wellington West Capital Inc.

Contact Information

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