Big Banc Split Corp. Announces Extension of Term and Increased Distribution Rates For Class A Shares and Preferred Shares
29 Septembre 2023 - 10:34PM
(TSX: BNK, BNK.PR.A) Big Banc Split Corp. (the “Company”) is
pleased to announce that the board of directors of the Company has
approved an extension of the maturity date of the Company’s class A
shares (“Class A Shares”) and preferred shares (“Preferred Shares”)
for an additional 3-year term to November 30, 2026 (the “New Term”)
along with a significant increase in distribution rates for both
Class A Shares and Preferred Shares. Effective December 1, 2023,
the monthly distribution on Class A Shares will increase to $0.12
per Class A Share (or $1.44 per annum), representing a 14.8% yield
per annum based on the closing price as at September 28, 2023. The
monthly distributions on Preferred Shares will increase to $0.07
($0.84 per annum), representing an 8.4% yield on the par value of
$10.00 per Preferred Share (the “Preferred Share Distribution
Rate”). Purpose Investments Inc. (“Purpose”) is the manager,
portfolio manager and promoter of the Company and provides all
administrative services required by the Company.
“Having carefully assessed the portfolio of the
Company and its yield-generating potential, we are pleased to
provide shareholders with an extension of the Company’s maturity
date, along with material increases in monthly distribution rates
on both the Class A Shares and Preferred Shares,” said Vlad
Tasevski, Head of Asset Management and Head of Investors and
Institutional Partners at Purpose Investments Inc. “We believe the
Preferred Shares offer a very competitive combination of attractive
monthly distributions and downside protection, while the Class A
shares combine the opportunity for an enhanced capital appreciation
with an attractive double-digit distribution yield per annum. We
believe this emphasis on yield is consistent with our medium-term
market outlook for the Company’s Portfolio,” added Tasevski.
The Company invests on an approximately equally
weighted basis in a portfolio (the “Portfolio”) of equity
securities (the “Portfolio Shares”) of the following publicly
traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of
Commerce; National Bank of Canada; Royal Bank of Canada; The Bank
of Nova Scotia; and The Toronto-Dominion Bank. In order to seek
additional returns and enhance the Portfolio’s income, Purpose
Investments Inc. (“Purpose Investments”), the Company’s manager,
may write covered call options and cash-covered put options in
respect of some or all of the Portfolio Shares held in the
Portfolio.
In connection with the extension, holders of
Class A Shares and Preferred Shares who do not wish to continue
their investment in the Company will be able to retract their
Preferred Shares or Class A Shares, as applicable, on November 30,
2023, pursuant to a special retraction right and receive a
retraction price that is calculated in the same way that such price
would be calculated if the Company were to terminate on November
30, 2023. Pursuant to this option, the retraction price may be less
than the market price if the Class A Share or Preferred Share, as
applicable, is trading at a premium to net asset value. To exercise
this retraction right, shareholders must provide notice to their
investment dealer by October 31, 2023, at 5:00 p.m. (Toronto time).
Alternatively, shareholders may sell their Preferred Shares and/or
Class A Shares through their securities dealer at the market price
at any time, potentially at a higher price than would be achieved
through retraction, or shareholders may take no action and continue
to hold their Class A Shares or Preferred Shares.
About Purpose Investments
Inc.Purpose Investments is an asset management company
with more than $16 billion in assets under management. Purpose
Investments has an unrelenting focus on client-centric innovation,
offering a range of managed and quantitative investment products.
Purpose Investments is led by well-known entrepreneur Som Seif and
is a division of Purpose Unlimited, an independent,
technology-driven financial services platform that is reshaping the
industry by connecting and creating opportunities across asset
management, wealth management and small business financial
services.
For further information, please contact:Keera Hart
Keera.Hart@kaiserpartners.com 905-580-1257
You will usually pay brokerage fees to your
dealer if you purchase or sell shares of the investment funds on
the Toronto Stock Exchange. If the securities are purchased or sold
on the Toronto Stock Exchange or other market, you may pay more
than the current net asset value when buying shares of the
investment fund and may receive less than the current net asset
value when selling them. Investment funds are not guaranteed, their
values change frequently, and past performance may not be
repeated.
Commissions, trailing commissions, management
fees and expenses may all be associated with investment Fund
investments. The prospectus contains important detailed information
about the investment Fund. Please read the prospectus before
investing. There is no assurance that any Fund will achieve its
investment objective, and its net asset value, yield, and
investment return will fluctuate from time to time with market
conditions. Investment Fund securities are not covered by the
Canada Deposit Insurance Corporation or by any other government
deposit insurer. Investment Funds are not guaranteed, their values
change frequently, and past performance may not be repeated.
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