Dividend Growth Split Corp.

Dividend Growth Split Corp.

December 23, 2010 11:24 ET

Dividend Growth Split Corp. Closes Over-Allotment

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


Dividend Growth Split Corp. (TSX:DGS)(TSX:DGS.PR.A) is pleased to announce that it has completed the issuance of 125,000 class A shares and 125,000 preferred shares for aggregate gross proceeds of $2.41 million. Shares will trade on the Toronto Stock Exchange under the existing symbols DGS (class A shares) and DGS.PR.A (preferred shares). This issuance was pursuant to the exercise of the over-allotment option granted to the agents in connection with the Fund's recently completed treasury offering. With the exercise of the over-allotment option, the total proceeds raised by the Fund is $23.6 million.

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. 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 preferred shares were offered at a price of $10.00 per share. 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 at the time of redemption on November 30, 2014.

The class A shares were offered at a price of $9.30 per share. The investment objectives for the class A shares are to provide their 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 was placed through a group of agents co-led by RBC Capital Markets and CIBC World Markets Inc., and included 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 Private Wealth Inc., Manulife Securities Incorporated, Raymond James Ltd., Canaccord Genuity Corp., 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
    Chris Cullen
    Senior Vice-President