An anonymous director reports

LIFE & BANC SPLIT CORP. ANNOUNCES OVERNIGHT OFFERING

Life & Banc Split Corp. is undertaking an overnight treasury offering of Class A and preferred shares.

The sales period for the offering is expected to end on Thursday, April 18, 2024. The offering is expected to close on or about April 25, 2024, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange.

The Class A shares will be offered at a price of $7.65 per Class A share for a distribution rate of 15.7 per cent on the issue price. The preferred shares will be offered at a price of $10 per preferred share for a yield to maturity of 7.4 per cent. The closing prices on the TSX for each of the Class A shares and the preferred shares on April 16, 2024, were $7.76 and $10.12, respectively. The Class A share and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value (NAV) per unit of the company (calculated as at April 16, 2024), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering. 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) until Oct. 30, 2028, and to return the original issue price to holders of preferred shares on Oct. 30, 2028.

Over the last 10 years, the Class A shares have delivered a 13-per-cent-per-annum total return based on NAV (net asset value), outperforming the S&P/TSX Composite Index by 5.3 per cent per annum. The preferred shares have returned 5.3 per cent per annum over the last 10 years, outperforming the S&P/TSX Preferred Share TR Index by 3.2 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;
• Great-West Lifeco Inc.;
• National Bank of Canada;
• Bank of Nova Scotia;
• Canadian Imperial Bank of Commerce;
• Royal Bank of Canada;
• IA Financial Corp. Inc.;
• Toronto-Dominion Bank;
• Sun Life Financial Inc.;
• 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.