Premium Income to close overnight offering Jan. 29

Executive Summary

• Premium Income Corp. successfully completed an overnight treasury offering of 2,633,000 preferred shares, raising gross proceeds of approximately $42.65 million.
• The preferred shares are priced at $16.20 per share and pay fixed cumulative monthly cash distributions of 10.625 cents per share (8.50% yield on original issue price).
• The fund invests primarily in common shares of major Canadian banks and utilizes covered call and put options to generate additional returns.

Key Details

• Transaction Structure: Overnight treasury offering of preferred shares.
• Quantity: 2,633,000 preferred shares.
• Price: $16.20 per preferred share.
• Gross Proceeds: $42,654,600.
• Closing Date: Expected on or about January 29, 2026.
• Conditions: Subject to closing conditions, including approval by the Toronto Stock Exchange (TSX).
• Dividend/Distribution Terms:
  • Fixed cumulative preferential monthly cash distributions.
  • Amount: 10.625 cents ($0.10625) per preferred share per month.
  • Annualized Amount: $1.275 per annum.
  • Yield: 8.50% on the original issue price of $15.00.
  • Historical Aggregate Dividends: $25.96 per share since inception.
• Market Context:
  • TSX Trading Price (Jan 21, 2026): $16.46 per share.
• Investment Strategy:
  • Portfolio consists principally of common shares of: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and Toronto-Dominion Bank.
  • Strategy includes selectively writing covered call and put options on portfolio shares to generate additional returns above dividend income.
• Management: Mulvihill Capital Management Inc. (Manager and Investment Manager).
• Syndicate: Led by National Bank Financial Inc.