An anonymous director reports

NORTH AMERICAN FINANCIAL 15 SPLIT CORP. ANNOUNCES OVERNIGHT OFFERING

North American Financial 15 Split Corp. will undertake an offering of preferred shares and Class A shares of the company. The offering will be led by National Bank Financial Inc.

The preferred shares will be offered at a price of $10.05 per preferred share to yield 6.7 per cent and the Class A shares will be offered at a price of $7.75 per Class A share to yield 17.5 per cent.

The closing price on the Toronto Stock Exchange of each of the preferred shares and the Class A shares on Jan. 18, 2022, was $10.14 and $7.87, respectively.

Since inception of the company, the aggregate dividends declared on the preferred shares have been $9.33 per share and the aggregate dividends declared on the Class A shares have been $15.36 per share, for a combined total of $24.69. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the company to invest in an actively managed, high-quality portfolio consisting of 15 financial services companies made up of Canadian and United States issuers as shown in the attached table.

The company's investment objectives are as below.

Preferred shares:

1. To provide holders of the preferred shares with fixed, cumulative preferential monthly cash dividends currently in the amount of 6.75 per cent annually, to be set by the board of directors annually, subject to a minimum of 5.50 per cent until 2024;
2. On or about the termination date, currently Dec. 1, 2024 (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 dividends in an amount to be determined by the board of the 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, 2024 (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. EST on Jan. 20, 2022. The offering is expected to close on or about Jan. 27, 2022, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange.