Brompton Split Banc Corp. Files Rights Offering.TORONTO -- Brompton Split Banc Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. )(TSX:SBC.PR.A) is pleased to announce that the net asset value per Class A share has increased significantly since inception to $15.70. Class A shareholders have also received the benefit of high monthly cash distributions of $0.10 per share per month. The Class A and Preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. began trading on November 16, 2005 the combination of which, referred to as a Unit, has been trading at a premium to the net asset value. As a result, the Company is also pleased to announce that it has filed a final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. relating to a rights offering of Units available to all Class A shareholders. Each Class A shareholder as of the record date of March 13, 2006, will be entitled to receive one Right for each Class A share held. One Right will entitle the holder to purchase a Unit, consisting of one Class A share and one Preferred share for $26.10 on or before April 10, 2006, the expiry date. The exercise price is set at a discount to the market price of a Unit and at a premium to the most recently published net asset value per Unit. On this basis, the exercise of the Rights would be accretive to existing Class A shareholders on a net asset value per share basis. Successful completion of the Rights Offering is also expected to increase the trading liquidity of the shares and reduce the management expense ratio of the Company. The Manager has made application to list the rights on the TSX under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors SBC.RT. It is expected that the Rights will commence trading on March 9, 2006 and continue trading until April 10, 2006. Brompton Split Banc Corp. was created to provide investors with an equal-weighted investment in the six largest Canadian banks utilizing a split share structure on a low cost basis. Class A shareholders receive the benefits of monthly cash distributions at a current rate of $1.20 per share per annum Per annum Yearly. , low management fees and the opportunity for growth in net asset value. Preferred shareholders receive fixed quarterly distributions at a rate of $0.525 per share per annum. The Preferred shares are rated Pfd-2 by Dominion Bond Rating Service Dominion Bond Rating Service is a credit rating agency based in Toronto, Ontario. Founded in 1976, it is one of the largest credit rating agencies in Canada. It is one of five Nationally Recognized Statistical Rating Organizations in the United States, though significantly smaller Limited. Highstreet Asset Management Inc., the Option Advisor, may at its discretion selectively write covered call Covered Call Having a long position in an asset combined with a short position in a call option on the same underlying asset. Notes: This is considered to be one of the safest option positions. and cash covered put options to generate additional distributable income for the Fund. The Company is managed by Brompton SBC Management Limited, a member of the Brompton Group of Companies. For further information, please contact your financial advisor, call our investor relations line at 416-642-9051 (toll free at 1-866-642-6001) or visit our website at www.bromptongroup.com. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the fund's publicly filed documents which are available from SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Brompton Split Banc Corp. (TSX:SBC) (TSX:SBC.PR.A) |
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