Life & Banc Split Corp. Completes Preferred Share Offering
Not for distribution to U.S. newswire services or for dissemination in the United States.
TORONTO, Oct. 31, 2023 (GLOBE NEWSWIRE) — (TSX: LBS, LBS.PR.A) Life & Banc Split Banc Corp. (the “Company”) is pleased to announce that it has completed the previously announced treasury offering of preferred shares (“Preferred Shares”) for aggregate gross proceeds of approximately $94 million. The Preferred Shares will trade on the Toronto Stock Exchange (“TSX”) under the existing symbol LBS.PR.A.
The Preferred Shares were offered at a price of $9.60 per Preferred Share for a yield to maturity of 8.3%.(1) The syndicate of agents for the offering was led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc., and Scotiabank and included Hampton Securities Limited, Canaccord Genuity Corp., BMO Capital Markets, Raymond James Ltd., TD Securities Inc., iA Private Wealth Inc., Echelon Wealth Partners Inc., Manulife Securities Incorporated, Research Capital Corporation and Richardson Wealth Limited.
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:
| Manulife Financial Corporation | Bank of Montreal |
| Sun Life Financial Inc. | The Toronto-Dominion Bank |
| iA Financial Corporation Inc. | National Bank of Canada |
| Royal Bank of Canada | The Bank of Nova Scotia |
| Great-West Lifeco Inc. | Canadian Imperial Bank of Commerce |
About Brompton Funds
Founded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment funds. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.
(1) See Performance table below. Yield to maturity for the Preferred Share is based on maturity date of October 30, 2028.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Company on the TSX or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the Company and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Company in its public filings available at www.sedarplus.ca. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
| Life & Banc Split Corp. Compound Annual Returns to September 30, 2023 | 1-Yr | 3-Yr | 5-Yr | 10-Yr | S.I. |
| Preferred Shares (TSX: LBS.PR.A) | 5.6% | 5.6% | 5.5% | 5.2% | 5.3% |
| S&P/TSX Preferred Share Index | (4.5%) | 1.2% | (0.9%) | 0.7% | 1.4% |
Returns are for the periods ended September 30, 2023, and are unaudited. Inception date October 17, 2006. The table shows the compound return on a Preferred Share for each period indicated compared to the S&P/TSX Preferred Share Index (“Preferred Share Index”). The Preferred Share Index tracks the performance, on a market‑weight basis, of a broad index of preferred shares trading on the TSX that meet the criteria relating to size, liquidity and issuer rating. It is not expected that the performance of the Preferred Shares will mirror that of the Preferred Share Index, which has a more diversified portfolio.
Past performance does not necessarily indicate how the Preferred Shares will perform in the future. The information shown is based on the redemption price per Preferred Share and assumes that distributions made by the Company on the Preferred Shares in the periods shown were reinvested (at the redemption price per Preferred Share) in additional Preferred Shares of the Company.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
