Premium Income Corporation's Successful Preferred Shares Offering
Premium Income Corporation is thrilled to share the news about a successful overnight treasury offering that resulted in the issuance of 4,350,000 Preferred Shares. This initiative brought in gross proceeds of $65,250,000, demonstrating strong investor confidence.
Details of the Offering
The offering is on track to finalize shortly, pending certain closing conditions. The anticipated closing date is set for approximately early November, subject to the approval processes of the Toronto Stock Exchange (TSX). Each Preferred Share has been priced at $15.00, presenting a favorable yield of 8.50% based on the original issue price.
Recent Trading Activity
As of the latest trading close, the Preferred Shares were being exchanged at $15.16. Since the fund's inception, it has declared a total of $24.36 per share in dividends, showcasing its commitment to delivering reliable returns to its shareholders.
Investment Portfolio Overview
Premium Income Corporation strategically invests in a diverse range of common shares, primarily focusing on prominent players such as 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. This well-rounded portfolio aims not only to generate dividend income but also to enhance returns by employing selective strategies involving covered call and put options.
Role of Mulvihill Capital Management Inc.
The responsibility of managing the fund lies with Mulvihill Capital Management Inc., which expertly oversees the investment strategies to align with shareholder objectives and market dynamics.
Preferred Shares Distribution Details
Investors in the Preferred Shares will receive fixed cumulative preferential monthly cash distributions amounting to $0.10625—totalling an annual yield of 8.50% based on the initial share price of $15.00. This consistent payout reflects the fund's solid performance and reliable dividend policy.
Syndicate of Agents
Credit for the successful placement of the offering goes to a team of well-respected agents. The syndicate was co-led by prominent financial institutions including National Bank Financial Inc., CIBC Capital Markets, RBC Capital Markets, and Scotiabank. Their collaboration was crucial in reaching a wide array of investors.
Contact Information
For additional details regarding the offering or the Fund, please reach out to Investor Relations. They can be contacted at 416.681.3966, toll-free at 1.800.725.7172, or via email at info@mulvihill.com. More information is available at www.mulvihill.com.
Frequently Asked Questions
What was the total amount raised through the offering?
The offering successfully raised $65,250,000 for Premium Income Corporation.
What is the yield on the Preferred Shares?
The Preferred Shares offer a yield of 8.50% based on the original issue price of $15.00.
Which financial institutions were involved in the offering?
The offering was co-led by National Bank Financial Inc., CIBC Capital Markets, RBC Capital Markets, and Scotiabank.
How does Premium Income Corporation generate returns?
The Corporation invests in major bank shares and generates additional returns through the selective writing of covered call and put options.
How can investors learn more about the company?
Investors can contact Investor Relations at 416.681.3966 or visit their website at www.mulvihill.com for more details.
