New Stock Arbitrage — Dividend 15 Split Corp.
Dividend 15 Split Corp is a Canadian is a mutual fund corporation. It aims to pay monthly cash dividends. The company invests in a portfolio of 15 dividend yielding, high-quality Canadian companies. It offers two types of shares i.e. class A shares and preferred shares. The company’s investment objectives are to provide holders of preferred shares with fixed cumulative preferential monthly cash dividends as well as to provide holders of Class A shares with regular monthly cash distribution.
Dividend 15 Split Corp. announced yesterday it will undertake an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc. and RBC Capital Markets. The Preferred Shares will be offered at a price of $10.00 per Preferred Share and the Class A Shares will be offered at a price of $8.75 per Class A Share. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on October 22, 2019 was $10.34 and $8.91, respectively.
The net proceeds of the offering will be used by the Company to invest in an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies, for instance Bank of Montreal, Enbridge Inc., TELUS Corporation and so on. The sales period of this overnight offering will end at 9:00 a.m. EST on October 24, 2019. The offering is expected to close on or about October 31, 2019.