- Brompton Lifeco Split Corp. (LCS) reports successful overnight offering
- Gross proceeds of the offering are expected to be approximately $40.5 million
- The Class A shares were offered at a price of $6.95 per Class A share for a distribution rate of 12.9 per cent
- Brompton is an experienced investment fund manager with income focused investment solutions including exchange-traded funds
- Brompton Lifeco Split Corp. (LCS) is down 4.37 per cent, trading at C$6.78 at 1:52 pm EST
Brompton Lifeco Split Corp. (LCS) has reported a successful overnight treasury offering of class A shares and preferred shares.
The gross proceeds of the offering are expected to be approximately $40.5 million. The offering is expected to close on or about January 13, 2022, and is subject to certain closing conditions.
Brompton has granted the agents an over-allotment option, exercisable for 30 days following the closing date of the offering, to purchase up to an additional 15 per cent of the number of Class A shares and preferred shares issued at the closing of the offering.
The Class A shares were offered at a price of $6.95 per Class A share for a distribution rate of 12.9 per cent on the issue price, and the preferred shares were offered at a price of $10.05 per preferred share for a yield to maturity of 6.6 per cent.
The closing market price on the TSX for each of the Class A shares and preferred shares on January 6, 2022, was $7.09 and $10.21, respectively.
The Class A share and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of Brompton, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.
Over the last 3 years, the Class A shares have delivered a 42.0 per cent per annum total return based on net asset value and the preferred shares have returned 6.4 per cent per annum, as of December 31, 2021.
Founded in 2000, Brompton is an experienced investment fund manager with income-focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment funds.
Brompton Lifeco Split Corp. (LCS) is down 4.37 per cent, trading at C$6.78 at 1:52 pm EST.
