Dividend Growth Split Corp.

Dividend Growth Split Corp.

November 21, 2007 16:24 ET

Dividend Growth Split Corp. Files Final Prospectus

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) - Brompton Funds Management Limited is pleased to announce that Dividend Growth Split Corp. has filed a final prospectus in respect of an initial public offering of class A and preferred shares for a maximum offering size of $100 million. The preferred shares have been provisionally rated Pfd-2 by Dominion Bond Rating Service Limited.

Dividend Growth Split Corp. has been created to provide investors with an investment in 20 large capitalization Canadian equities that have demonstrated the highest dividend growth rates over a five year period and have a current dividend yield of at least 2% per annum, utilizing a split share structure on a low cost basis.

Class A shareholders will receive the benefits of monthly cash distributions targeted to be 8.0% per annum, low management fees and the opportunity for growth in net asset value. Preferred shareholders will receive attractive quarterly distributions of 5.25% per annum supported by the high credit quality of the underlying assets. Highstreet Asset Management Inc. has been retained to selectively write covered call and cash covered put options to generate additional distributable income for the fund.

The Toronto Stock Exchange has conditionally approved the listing of the class A shares and preferred shares subject to Dividend Growth Split Corp. fulfilling all of the customary requirements. Trading of class A shares and of preferred shares under the symbols DGS and DGS.PR.A is expected to commence on December 3, 2007, the date of closing.

The syndicate of agents for the offering is being co-led by RBC Capital Markets, CIBC World Markets Inc. and Scotia Capital Inc. and includes TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, Raymond James Ltd., Wellington West Capital Inc., Blackmont Capital Inc., IPC Securities Corporation and Research Capital Corporation.

For further information, please contact your financial advisor 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 prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    (416) 642-6008
    Website: www.bromptongroup.com