Brompton Split Banc Corp. Announces Renewed ATM Equity Program
Located in Toronto, Brompton Split Banc Corp. (TSX: SBC, SBC.PR.A) is excited to share the renewal of its at-the-market equity program (the "ATM Program") aimed at enhancing investment opportunities for potential investors. This renewal allows the Fund to issue Class A Shares and Preferred Shares to the public at various intervals, based on the Fund’s discretion. This fresh program replaces the one initiated in the prior year and aims to provide accessibility for investors while aligning with market conditions.
Details of the ATM Program
The renewed ATM program enables the issuance of class A and preferred shares through the Toronto Stock Exchange (TSX) or other Canadian marketplaces. Each share type will be available at market prices determined at the time of sale. The sales of the shares will occur under the stipulations of an equity distribution agreement signed with RBC Capital Markets, identified as the Agent for this program.
Distribution Mechanics
This newly established program focuses on "at-the-market distributions" as defined by the regulations. The successful execution of the ATM Program, which has a maximum gross proceeds target of $75 million for both Class A and Preferred Shares, is contingent upon the ongoing strategic management by the Fund.
Fund Investment Strategy
Under the strategy outlined by the Fund, the capital raised through this ATM Program will align with the investment objectives while adhering to regulatory restrictions. The investments primarily concentrate on the shares of the six major Canadian banks: Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Bank of Montreal. Additionally, up to 10% of the total assets may be allocated towards investments in global financial companies to foster diversification and potential enhanced returns.
Investment Objectives
The Class A Shares have been designed to provide monthly cash distributions to shareholders targeting a minimum of $0.10 per share, alongside offering growth in the net asset value. On the other hand, the Preferred Shares focus on delivering fixed cumulative quarterly distributions, aimed at $0.15625 per share (representing 6.25% per annum) and a return of the original issue price to shareholders by the specified maturity date.
Performance Insights
In the past decade, Class A Shares have recorded a substantial annual total return of 12.0% based on NAV, surpassing the S&P/TSX Composite Total Return Index by 3.7% annually. The Preferred Shares have displayed a 5.3% annual return over the same period, performing better than the S&P/TSX Preferred Share Total Return Index.
About Brompton Funds
Brompton has been an integral part of the investment landscape since its establishment in 2000, differentiating itself with income and growth-focused investment strategies, including exchange-traded funds (ETFs) and various other TSX-listed funds. Investors seeking further information are encouraged to reach out to their financial advisor or directly contact Brompton’s investor relations team at 416-642-6000, or toll-free at 1-866-642-6001. Alternatively, inquiries can be directed via email or by visiting the Brompton website.
Frequently Asked Questions
What is the ATM Program announced by Brompton Split Banc Corp.?
The ATM Program allows Brompton to issue Class A and Preferred Shares to the public at market prices, enhancing investment accessibility.
How much capital is the Fund targeting from the ATM Program?
The Fund aims to raise a maximum of $75 million from the issuance of both Class A and Preferred Shares through this program.
What banks does Brompton Split Banc Corp. invest in?
The Fund primarily invests in the six largest Canadian banks to ensure a diversified and stable investment portfolio.
What are the distribution objectives for Class A and Preferred Shares?
Class A Shares aim for a monthly cash distribution of at least $0.10, while Preferred Shares offer a fixed quarterly distribution of $0.15625.
How has the performance of the Class A Shares compared to the indices?
In the last ten years, Class A Shares achieved a 12.0% annual return, outperforming the S&P/TSX Composite Total Return Index by 3.7%.
