NB Split Corp.

NB Split Corp.

February 22, 2007 09:10 ET

NB Split Corp. Completes Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - Feb. 22, 2007) - NB Split Corp. (the "Company") (TSX:NBF.UN)(TSX:NBF.PR.A) is pleased to announce the closing today of the initial public offering, raising gross proceeds of $100 million through the issuance of 2,872,738 Capital Shares and 1,436,369 Preferred Shares of the Company at prices of $18.45 per Capital Share and $32.72 per Preferred Share.

The Company will acquire and hold common shares of National Bank of Canada (the "National Bank Shares") in order to generate quarterly fixed cumulative preferential distributions of $0.3886 for the holders of Preferred Shares representing a yield of 4.75% per annum based on the $32.72 issue price. Holders of Capital Shares are provided with a leveraged investment, the value of which is based on the value of the National Bank Shares. Holders of Capital Shares will also benefit from any increase in the dividends paid on the National Bank Shares and will be entitled to receive dividends as and when declared by the Board of Directors. Based on the current National Bank Share dividends and the estimated expenses of the Company, the Company initially expects to pay quarterly dividends of approximately $0.0296 per Capital Share ($0.1182 per year) representing a yield of approximately 0.64% per annum based on the $18.45 offering price.

The Capital Shares and the Preferred Shares are listed on the Toronto Stock Exchange under the symbols NBF and NBF.PR.A, respectively. The Preferred Shares have been rated Pfd-2 (low) by Dominion Bond Rating Service Limited.

The Company has granted the agents for the offering an over-allotment option to acquire additional shares exercisable at any time during the next 30 days.

The syndicate of agents for this offering was led by National Bank Financial Inc., and included Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Raymond James Ltd., Desjardins Securities Inc., Blackmont Capital Inc. and Wellington West Capital Inc.

Contact Information

  • FA Administration Services Inc.(the Company's Administrator)
    Rob MacNiven
    Investor Relations
    (416) 642-1289 or 1-877-642-1289
    Website: www.nbsplit.com