09:04:03 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



North American Financial 15 Split Corp
Symbol FFN
Shares Issued 7,537,470
Close 2015-05-27 C$ 9.19
Market Cap C$ 69,269,349
Recent Sedar Documents

N.A. Financial 15 arranges, prices overnight offering

2015-05-28 15:32 ET - News Release

An anonymous director reports

NORTH AMERICAN FINANCIAL 15 SPLIT CORP. ANNOUNCES OVERNIGHT OFFERING

North American Financial 15 Split Corp. has filed a preliminary short-form prospectus in each of the provinces of Canada with respect to an offering of preferred shares and Class A shares of the company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets, Scotia Capital Inc., and will also include BMO Capital Markets, GMP Securities LP, Canaccord Genuity Corp., Dundee Securities, Raymond James, Desjardins Securities Inc., Mackie Research Capital Corp. and Manulife Securities Inc.

The preferred shares will be offered at a price of $10 per preferred share to yield 5.25 per cent on the issue price and the Class A shares will be offered at a price of $8.65 per Class A share to yield 13.87 per cent on the issue price. The closing price on the Toronto Stock Exchange of each of the preferred shares and Class A shares on May 27, 2015, was $10.08 and $9.19, respectively.

Since inception of the company, the aggregate dividends paid on the preferred shares have been $5.58 per share and the aggregate dividends paid on the Class A shares have been $8.85 per share (including one special distribution of 25 cents per share), for a combined total of $14.43. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the secondary offering will be used by the company to invest in a high-quality portfolio consisting of 15 financial services companies made up of Canadian and United States issuers, as follows:

  • Bank of Montreal;
  • National Bank of Canada;
  • Bank of America Corp.;
  • The Bank of Nova Scotia;
  • Manulife Financial Corp.;
  • 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.

The company's investment objectives

Preferred shares:

  1. To provide holders of preferred shares with cumulative preferential monthly cash dividends, currently in the amount of 5.25 per cent annually, to be set by the board of directors annually subject to a minimum of 5.25 per cent until 2019;
  2. On or about the termination date of Dec. 1, 2019 (subject to further five-year extensions thereafter), to pay the holders of the preferred shares $10 per preferred share.

Class A shares:

  1. To provide holders of the Class A shares with regular monthly cash distributions in an amount to be determined by the board of directors;
  2. 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 Dec. 1, 2019 (subject to further five-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 a.m. (Toronto time) on May 29, 2015.

A preliminary short-form prospectus containing important information relating to the Class A and preferred shares has been filed with securities commissions or similar authorities in all provinces of Canada. The preliminary short-form prospectus is still subject to completion or amendment. Copies of the preliminary short-form prospectus may be obtained from your registered financial adviser using the contact information for such adviser, or from representatives of the underwriters listed above. There will not be any sale or any acceptance of an offer to buy the Class A or preferred shares until a receipt for the final short-form prospectus has been issued.

© 2024 Canjex Publishing Ltd. All rights reserved.