Financings
BROMPTON SPLIT BANC CORP. ANNOUNCES PREFERRED SHARE OFFERING
SBC · Price
Executive Summary
- Brompton Split Banc Corp. announced a treasury offering of preferred shares priced at $10.40 each, yielding 6.0% annualized.
- The offering is expected to close around March 6 2026, subject to TSX approval and other closing conditions.
- Preferred Shares provide quarterly cash distributions of $0.15625 per share (6.25% per annum) and include downside protection of ~55% on the fund’s net asset value.
Key Details
- Offering Price: $10.40 per preferred share (vs. prior close $10.45).
- Yield: 6.0% annualized based on offer price.
- Quarterly Distribution: Fixed cumulative cash distribution of $0.15625 per share (6.25% per annum on the original $10.00 issue price).
- Maturity/Redemption: Full return of original issue price scheduled for November 29 2027.
- Eligibility for March 2026 Dividend: Purchasers will receive the full March 2026 quarterly dividend when declared.
- Historical Dividends: Aggregate dividends declared at $10.37 per share, representing 81 consecutive quarterly payments since inception (Nov 16 2005 – Dec 31 2025).
- Downside Protection: Approximately 55% protection against a decline in the fund’s portfolio value, based on net asset value as of Feb 19 2026 adjusted for the Feb 25 2026 stock split.
- Rating: Morningstar DBRS rating of Pfd‑3.
- Lead Underwriter: RBC Capital Markets.
- Closing Timeline: Sales period ends 27 Feb 2026; anticipated closing on or about 6 Mar 2026, subject to TSX approval and other conditions.
- Fund Portfolio Composition: Approximately equal weighting in the six largest Canadian banks (RBC, Scotiabank, National Bank, TD, CIBC, BMO) with up to 10% of assets allowed in global financial companies for diversification.
- Prospectus Information: Short‑form base shelf prospectus filed; supplement will be filed prior to any sale.
Notable Quotes
(No direct quotes were provided in the release.)