North American Financial 15 Split Corp. Announces Overnight Offering
January 19 2022 - 02:27PM
North American Financial 15 Split Corp. (the “Company”) is pleased
to announce it will undertake an offering of Preferred Shares and
Class A Shares of the Company. The offering will be led by National
Bank Financial Inc.
The Preferred Shares will be offered at a price
of $10.05 per Preferred Share to yield 6.7% and the Class A Shares
will be offered at a price of $7.75 per Class A Share to yield
17.5%.
The closing price on the TSX of each of the
Preferred Shares and the Class A Shares on January 18, 2022 was
$10.14 and $7.87, respectively.
Since inception of the Company, the aggregate
dividends declared on the Preferred Shares have been $9.33 per
share and the aggregate dividends declared on the Class A Shares
have been $15.36 per share, for a combined total of $24.69. All
distributions to date have been made in tax advantage eligible
Canadian dividends or capital gains dividends.
The net proceeds of the offering will be used by
the Company to invest in an actively managed, high quality
portfolio consisting of 15 financial services companies made up of
Canadian and U.S. issuers as follows:
Bank of Montreal |
National Bank of Canada |
Bank of America Corp. |
The Bank of Nova Scotia |
Manulife Financial Corporation |
Citigroup Inc. |
Canadian Imperial Bank of Commerce |
Sun Life Financial Services of Canada Inc. |
Goldman Sachs Group Inc. |
Royal Bank of Canada |
Great-West Lifeco Inc. |
JP Morgan Chase & Co. |
The Toronto-Dominion Bank |
CI Financial Corp. |
Wells Fargo & Co. |
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The Company’s investment objectives are:
Preferred Shares:
- to provide holders of the Preferred
Shares with fixed, cumulative preferential monthly cash dividends
currently in the amount of 6.75% annually, to be set by the Board
of Directors annually subject to a minimum of 5.50% until 2024;
and
- on or about the termination date,
currently December 1, 2024 (subject to further 5 year extensions
thereafter), to pay the holders of the Preferred Shares $10.00 per
Preferred Share.
Class A Shares:
- to provide holders of the Class A
Shares with regular monthly cash dividends in an amount to be
determined by the Board of the Directors; and
- to permit holders to participate in
all growth in the net asset value of the Company above $10 per
Unit, by paying holders on or about the termination date of
December 1, 2024 (subject to further 5 year extensions thereafter)
such amounts as remain in the Company after paying $10 per
Preferred Share.
The sales period of this overnight offering will
end at 9:00 a.m. EST on January 20, 2022. The offering is expected
to close on or about January 27, 2022 and is subject to certain
closing conditions including approval by the TSX.
A prospectus supplement to the Company’s short
form base shelf prospectus dated July 3, 2020 as amended on
September 27, 2021 containing important detailed information
about the Preferred Shares and the Class A Shares being offered
will be filed with securities commissions or similar authorities in
all provinces of Canada. Copies of the prospectus supplement and
the short form base shelf prospectus may be obtained from your
registered financial advisor using the contact information for such
advisor, or from representatives of the agents listed above. There
will not be any sale or any acceptance of an offer to buy the
securities being offered until the prospectus supplement has been
filed with the Securities Commissions or similar authorities in
each of the provinces and territories of Canada.
For further information, please contact:North
American Financial 15 Split Corp.Investor Relations416-304-4443Toll
free at 1-877-4-Quadra (1-877-478-2372)www.financial15.com
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