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Enter Symbol
or Name
USA
CA



Premium Income Corp (2)
Symbol PIC
Shares Issued 9,749,268
Close 2014-10-22 C$ 8.21
Market Cap C$ 80,041,490
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Premium Income files short form prospectus for offering

2014-10-23 13:29 ET - News Release

Mr. David Roode reports

PREMIUM INCOME CORPORATION FILES PRELIMINARY PROSPECTUS FOR FOLLOW-ON OFFERING

Premium Income Corp. has filed a preliminary short form prospectus relating to a treasury offering of preferred shares and Class A shares. Investors may purchase preferred shares or Class A shares by way of cash payment or through an exchange of freely tradable shares of the five banks included in the portfolio and of shares of the National Bank of Canada. For any purchase by way of exchange in excess of $1-million, purchasers may elect to defer any accrued gains through a tax-deferred rollover.

The fund invests in a portfolio consisting principally of common shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the fund's portfolio, the fund will selectively write covered call options in respect of some or all of the common shares in the fund's portfolio. The fund may also, from time to time, write cash-covered put options in respect of securities in which the fund is permitted to invest. Strathbridge Asset Management Inc. is the manager and investment manager of the fund.

The preferred shares pay fixed cumulative preferential quarterly cash distributions in the amount of 21.5625 cents (86.25 cents per year) per preferred share, representing a yield of 5.75 per cent on the original issue price of $15. The Class A shares currently pay quarterly distributions in the amount of 20.319 cents (81.276 cents per year) per Class A share.

The syndicate of agents for the offering is being led by Scotiabank and RBC Capital Markets and includes BMO Capital Markets, CIBC, National Bank Financial Inc., TD Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd. and Mackie Research Capital Corp.

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