Dividend 15 Split closes $142.6-million offering

Executive Summary

• Dividend 15 Split Corp. has completed an overnight offering of preferred shares, raising total gross proceeds of $142.6 million.
• The preferred shares are trading on the Toronto Stock Exchange under the symbol DFN.PR.A, with National Bank Financial Inc. leading the offering.
• Net proceeds will be invested in a portfolio of high-quality, dividend-yielding Canadian companies, including major banks, energy, and telecom firms.

Key Details

• Gross Proceeds: $142,642,500 ($142.6 million).
• Instrument: Preferred shares.
• Trading Symbol: DFN.PR.A on the Toronto Stock Exchange.
• Lead Underwriter: National Bank Financial Inc.
• Use of Proceeds: Investment in an actively managed, high-quality portfolio of dividend-yielding Canadian companies.
• Portfolio Holdings:
  • Bank of Montreal
  • Bank of Nova Scotia
  • BCE Inc.
  • Canadian Imperial Bank of Commerce
  • Enbridge Inc.
  • Manulife Financial Corp.
  • National Bank of Canada
  • Royal Bank of Canada
  • Sun Life Financial Inc.
  • TC Energy
  • Telus Corp.
  • Thomson Reuters Corp.
  • Toronto-Dominion Bank
  • TransAlta Corp.
• Dividend Terms: Fixed, cumulative preferential monthly cash dividends of 7.00% annually based on the original $10 issue price.
• Maturity/Termination: On or about December 1, 2029 (subject to further five-year extensions), holders will receive the original $10 issue price per share.