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United States./
TORONTO, Nov. 6, 2024
/CNW/ - (TSX: PIC.PR.A) – Premium Income Corporation (the
"Fund") is pleased to announce that it has completed the previously
announced treasury offering of 4,350,000 preferred shares (the
"Preferred Shares") for gross proceeds of approximately
$65,250,000. The Preferred
Shares will trade on the Toronto Stock Exchange under the existing
symbol PIC.PR.A.
The Preferred Shares were offered at a price of $15.00 per Preferred Share representing a yield
on the original issue price of 8.50%.
The Fund invests in a portfolio consisting principally of common
shares of Bank of Montreal, The
Bank of Nova Scotia, Canadian
Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank. To
generate additional returns above the dividend income earned on the
Fund's portfolio, the Fund will selectively write covered call
options in respect of some or all of the common shares in the
Fund's portfolio. The manager and investment manager of the Fund is
Mulvihill Capital Management Inc.
The Preferred Shares pay fixed cumulative preferential monthly
cash distributions in the amount of $0.10625 ($1.275
per annum) per Preferred Share representing a yield of 8.50% on the
original issue price of $15.00.
The syndicate of agents for the offering was co-led by National
Bank Financial Inc., CIBC Capital Markets, RBC Capital Markets, and
Scotiabank.
For further information, please contact Investor Relations at
416.681.3966, toll free at 1.800.725.7172, email at
info@mulvihill.com or visit www.mulvihill.com
SOURCE Premium Income Corporation
