Dividend Growth Split Corp.
TSX : DGS
TSX : DGS.PR.A

Dividend Growth Split Corp.

November 23, 2010 08:03 ET

Dividend Growth Split Corp. Announces Treasury Offering

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Dividend Growth Split Corp. (TSX:DGS)(TSX:DGS.PR.A) is pleased to announce it has filed a preliminary short form prospectus with respect to a treasury offering of preferred shares and class A shares.

Dividend Growth Split Corp. invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Currently, the portfolio consists of common shares of the following 20 companies:

AGF Management Limited IGM Financial Inc. Royal Bank of Canada
Bank of Montreal Industrial Alliance Insurance and Financial Services Inc. Shaw Communications Inc.
The Bank of Nova Scotia Manitoba Telecom Services Limited Sun Life Financial Inc.
Canadian Imperial Bank
of Commerce
Manulife Financial Corporation TELUS Corporation
Canadian Utilities Limited National Bank of Canada The Toronto-Dominion Bank
Enbridge Inc. Power Corporation of Canada TransCanada Corporation
Great-West Lifeco Inc. Rogers Communications Inc.  

The offering price of the preferred shares is $10.00 per share. The closing price of the preferred shares on the TSX on November 19, 2010 was $10.45. The investment objectives for the preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per preferred share to yield 5.25% per annum on the original issue price, and to return the original issue price to holders of preferred shares at the time of redemption on November 30, 2014.

The final class A share offering price will be non-dilutive to existing class A shareholders as it will be set at a level that ensures that the net proceeds of the Offering per Unit are greater than the most recently calculated Net Asset Value per Unit prior to the date of the final prospectus. The closing price of the class A shares on the TSX on November 19, 2010 was $9.70. The investment objectives for the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.10 per class A share, and to provide the opportunity for growth in net asset value per class A share.

The offering is available through a group of underwriters co-led by RBC Capital Markets and CIBC World Markets Inc., and includes TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Mackie Research Capital Corporation, Macquarie Capital Markets Canada Ltd, Manulife Securities Inc., Raymond James Ltd., Canaccord Financial Ltd., Dundee Securities Corporation, Desjardins Securities Inc., and Wellington West Capital Markets Inc.

For further information, please contact your financial advisor, call Brompton's investor relations line at 416-642-9051 (toll-free at 1-866-642-6001) or visit our website at www.bromptongroup.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Brompton Funds Management Limited
    Christopher Cullen
    Senior Vice President
    416-642-9064