GlobalBanc Advantaged 8 Split Corp.

GlobalBanc Advantaged 8 Split Corp.

May 02, 2007 10:35 ET

GlobalBanc Advantaged 8 Split Corp. Files Preliminary Prospectus

TORONTO, ONTARIO--(CCNMatthews - May 2, 2007) - GlobalBanc Advantaged 8 Split Corp. (the "Company") announces that it has filed a preliminary prospectus with the securities regulatory authorities of all the Canadian provinces and territories for an initial public offering of Preferred Shares and Class A Shares.

The Company has been created to provide holders of its shares with tax-efficient exposure to the price performance and dividend payments (including any increases thereof) of an initially equally weighted basket of securities consisting of eight of the world's largest banks. Each of these banks will initially constitute approximately 12.5% of the market value of the portfolio securities. The portfolio securities will include equity securities of the following banks:



Citigroup Inc. UBS AG
Bank of America Corp. (DE) Banco Santander Central Hispano SA
Royal Bank of Scotland Group plc BNP Paribas
Deutsche Bank AG Societe Generale Group


The investment objectives with respect to the Preferred Shares are: (i) to provide holders with fixed cumulative preferential quarterly cash distributions that are expected to consist of non-taxable returns of capital and capital gains in the amount of $0.1125 per Preferred Share, representing a yield on the issue price of the Preferred Shares of 4.5% per annum; and (ii) to return $10.00 per Preferred Share at the time of redemption of such Preferred Shares on December 15, 2012. The Preferred Shares have been provisionally rated Pfd-2 by DBRS Limited.

The investment objectives with respect to the Class A Shares are: (i) to provide holders with the opportunity for leveraged growth in net asset value per Class A Share after the repayment of the original issue price of the Preferred Shares; and (ii) to provide holders of Class A Shares with cash distributions that are expected to consist of non-taxable returns of capital and capital gains as and when declared by the board of directors.

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

Contact Information

  • First Asset Funds Inc. (the Company's Administrator)
    Rob MacNiven
    Investor Relations
    (416) 642-1289 or 1-877-642-1289
    Website: www.firstassetfunds.com