Brompton Split Banc Corp. Completes Preferred Share Private Placement
December 14 2021 - 9:15AM
(TSX: SBC, SBC.PR.A) Brompton Split Banc
Corp. (the “Company”) is pleased to announce that it has completed
the previously announced private placement of preferred shares for
aggregate gross proceeds of approximately $32 million (the “Private
Placement”). Pursuant to the Private Placement, 3,164,203 preferred
shares were offered to investors at a price of $10.10 per preferred
share.
The Company’s previously announced split of its
class A shares (the “Share Split”) will be effected after the close
of business today. Following the Share Split there will be an equal
number of class A and preferred shares outstanding. DBRS has
confirmed that the rating of the preferred shares will continue to
be Pfd-3 (high) following the completion of the Share Split.
Over the last ten years to November 30, 2021,
the preferred shares have delivered a 4.9% per annum total return
based on NAV, outperforming the total return of the S&P/TSX
Preferred Share Index by 1.7% per annum with lower
volatility.(1)
Brompton Split Banc Corp. invests in a
portfolio, on an approximately equal weight basis, in common shares
of 6 Canadian Banks: Bank of Montreal, Canadian Imperial Bank of
Commerce, National Bank of Canada, Royal Bank of Canada, The Bank
of Nova Scotia and The Toronto-Dominion Bank.
About Brompton Funds
Founded in 2000, Brompton Funds Limited
(“Brompton”) is an experienced investment fund manager with
income focused investment solutions including TSX listed
closed-end funds and exchange-traded funds. For further
information, please contact your investment advisor, call
Brompton’s investor relations line at 416-642-6000 (toll-free at
1-866-642-6001), email us at info@bromptongroup.com or
visit our website at www.bromptongroup.com.
(1) See Standard Performance Data
table below.
Brompton Split Banc Corp.Compound Annual NAV
returns to November 30, 2021 |
1 Yr |
3 Yr |
5 Yr |
10 Yr |
S.I. |
Class A Shares (TSX:SBC) |
62.5 |
% |
19.3 |
% |
15.4 |
% |
17.9 |
% |
12.3 |
% |
S&P/TSX Capped Financials Index |
31.0 |
% |
13.8 |
% |
11.0 |
% |
12.9 |
% |
9.0 |
% |
S&P/TSX Composite Index |
23.5 |
% |
14.2 |
% |
9.7 |
% |
8.6 |
% |
7.3 |
% |
|
|
|
|
|
|
Preferred Shares (TSX:SBC.PR.A) |
5.1 |
% |
5.1 |
% |
5.0 |
% |
4.9 |
% |
5.1 |
% |
S&P/TSX Preferred Share Index |
20.6 |
% |
8.4 |
% |
7.0 |
% |
3.2 |
% |
3.0 |
% |
Returns are for the periods ended November 30,
2021 and are unaudited. Inception date November 15, 2005. The table
shows the Company’s compound return on a class A share and
preferred share for each period indicated, compared with the
S&P/TSX Capped Financials Index (“Financials Index”), the
S&P/TSX Composite Index (“Composite Index”), and the
S&P/TSX Preferred Share Index (“Preferred Share Index”)
(together the “Indices”). The Financials Index is derived from the
Composite Index based on the financials sector of the Global
Industry Classification Standard. The Composite Index tracks the
performance, on a market weight basis, of a broad index of
large-capitalization issuers listed on the TSX. The Preferred Share
Index tracks the performance, on a market weight basis, of
preferred shares listed on the TSX that meet criteria relating to
minimum size, liquidity, issuer rating, and exchange listing. The
class A shares and preferred shares are not expected to mirror the
performance of the Indices which have more diversified portfolios.
The Indices are calculated without the deduction of management
fees, fund expenses and trading commissions, whereas the
performance of the Company is calculated after deducting such fees
and expenses. Further, the performance of the Company’s class A
shares is impacted by the leverage provided by the Company’s
preferred shares.
You will usually pay brokerage fees to your
dealer if you purchase or sell shares of the investment funds on
the TSX or other alternative Canadian trading system (an
“exchange”). If the shares are purchased or sold on an exchange,
investors may pay more than the current net asset value when buying
shares of the investment fund and may receive less than the current
net asset value when selling them.
There are ongoing fees and expenses associated
with owning shares of an investment fund. An investment fund must
prepare disclosure documents that contain key information about the
fund. You can find more detailed information about the Company in
the public filings available at www.sedar.com. The indicated rates
of return are the historical annual compounded total returns
including changes in share value and reinvestment of all
distributions and do not take into account certain fees such as
redemption costs or income taxes payable by any securityholder that
would have reduced returns. Investment funds are not guaranteed,
their values change frequently and past performance may not be
repeated.
Certain statements contained in this document
constitute forward-looking information within the meaning of
Canadian securities laws. Forward-looking information may relate to
matters disclosed in this document 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. Investors should not place undue
reliance on forward-looking statements. These forward-looking
statements are made as of the date hereof and we assume no
obligation to update or revise them to reflect new events or
circumstances.
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 news
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.
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