An anonymous director reports

LIFE & BANC SPLIT CORP. ANNOUNCES OVERNIGHT OFFERING

Life & Banc Split Banc Corp. (the fund) has arranged an overnight treasury offering of Class A and preferred shares.

The sales period for the offering is expected to end on Tuesday, Dec. 12, 2023. The offering is expected to close on or about Dec. 19, 2023, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange (TSX).

The Class A shares will be offered at a price of $7.80 per Class A share for a distribution rate of 15.4 per cent on the issue price. The preferred shares will be offered at a price of $9.80 per preferred share for a yield to maturity of 8.1 per cent. The closing prices on the TSX for each of the Class A shares and the preferred shares on Dec. 8, 2023, were $7.93 and $9.93, respectively. The offering is being led by RBC Capital Markets.

The investment objectives for the Class A shares are to provide holders with regular monthly cash distributions targeted to be 10 cents per Class A share and to provide the opportunity for growth in the net asset value per Class A share.

The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of 18.125 cents per preferred share (72.5 cents per annum) for the period Oct. 30, 2023, to Oct. 30, 2028, and to return the original issue price plus accrued dividends (if any) to holders of preferred shares on Oct. 30, 2028.

Based on the most recently calculated net asset value per unit of the fund on Dec. 7, 2023, the preferred shares have downside protection from a decline in the value of the fund's portfolio of approximately 40 per cent. The preferred shares have delivered a 5.6-per-cent per annum total return over the last five years, outperforming the S&P/TSX Preferred Share TR Index by 3.5 per cent per annum. The preferred shares have a DBRS rating of Pfd-3.

The fund 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 Montreal;
• National Bank of Canada;
• Canadian Imperial Bank of Commerce;
• iA Financial Corporation Inc.;
• Sun Life Financial Inc.;
• Great-West Lifeco Inc.;
• The Bank of Nova Scotia;
• Royal Bank of Canada;
• The Toronto-Dominion Bank;
• Manulife Financial Corp.

A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The fund intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. 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.