Dividend 15 Split Corp. II

Dividend 15 Split Corp. II

December 07, 2006 12:42 ET

Dividend 15 Split Corp. II Over-Allotment Fully Exercised

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) - Dividend 15 Split Corp. II ("Dividend 15 II")(TSX:DF)(TSX:DF.PR.A) has issued an additional 390,000 Preferred Shares and 390,000 Class A Shares of the Company for aggregate gross proceeds of $9,750,000. These shares are pursuant to the over-allotment granted to the Company's agents in its recently completed public offering. This brings the company's net assets to $139,750,000. The additional shares have begun trading on the Toronto Stock Exchange under the existing symbols DF (Class A shares) and DF.PR.A (Preferred shares).

CIBC World Markets Inc. and RBC Dominion Securities Inc. were co-lead agents for the offering. The other members of the syndicate were 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.

The net proceeds from the over-allotment 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 National Bank of Canada Sun Life Financial Inc.

The Bank of Nova Scotia CI Financial TELUS Corporation

Canadian Imperial BCE Inc. The Thomson Corporation
Bank of Commerce

Royal Bank of Canada Manulife Financial TransAlta Corporation

The Toronto Dominion Bank Enbridge Inc. 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.

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.

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