An anonymous director reports
LIFE & BANC SPLIT CORP. ANNOUNCES SUCCESSFUL OVERNIGHT OFFERING
Life & Banc Split Corp. has noted a successful overnight treasury offering of Class A and preferred shares. Gross proceeds of the offering are expected to be approximately $50.1-million. The offering is expected to close on or about July 4, 2018, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange. The company has granted the agents (as defined later in this news release) an overallotment option, exercisable for 30 days following the closing date of the offering, to purchase up to an additional 15 per cent of the number of Class A shares and preferred shares issued at the closing of the offering.
The Class A shares were offered at a price of $9.80 per Class A share for a distribution rate of 12.2 per cent on the issue price and the preferred shares were offered at a price of $10 per preferred share for a yield to maturity of 4.9 per cent (please see the attached table). The Class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the company (calculated as at June 18, 2018), as adjusted for dividends and certain expenses to be accrued prior to, or upon, settlement of the offering.
The company invests in a portfolio consisting of common shares of the six largest Canadian banks and the four major publicly traded Canadian life insurance companies.
Bank of Nova Scotia Royal Bank of Canada
National Bank of Canada Industrial Alliance Insurance and Financial Services Inc.
Toronto-Dominion Bank Great-West Lifeco Inc.
Canadian Imperial Bank of Commerce Manulife Financial Corp.
Bank of Montreal Sun Life Financial Inc.
The syndicate of agents for the offering was led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial and Scotiabank, and includes BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., GMP Securities LP, Raymond James Ltd., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Desjardins Securities Inc. and Mackie Research Capital Corp.
COMPOUND ANNUAL NAV RETURNS TO MAY 31, 2018
Year 1 Year 3 Year 5 Year 10 S.I.
Class A shares 17.9% 15.7% 20.4% 11.6% 9.8%
S&P/TSX Composite Index 7.7% 5.4% 8.0% 3.9% 5.5%
S&P/TSX Capped Financials Index 11.5% 10.3% 12.5% 8.6% 7.8%
Preferred shares 4.9% 4.9% 4.9% 5.1% 5.2%
S&P/TSX Preferred Share Index 7.9% 3.2% 1.2% 3.1% 2.3%
We seek Safe Harbor.
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