New Stock Arbitrage — Life & Banc Split Corp.

Life & Banc Split Corp is a mutual fund company. The Fund’s investment objectives are to provide holders of preferred shares with fixed cumulative preferential quarterly cash distributions and to return the original issue price on the maturity date and to provide holders of Class A shares with regular monthly cash distributions and the opportunity for capital appreciation. Primarily, it invests in a portfolio comprising of common shares of Canadian banks and publicly traded Canadian life insurance companies.

Life & Banc Split Corp. announced today it is undertaking an overnight treasury offering of class A and preferred shares. The sales period for this overnight offering will end at 9:00 a.m. (ET) on Thursday, March 28, 2019. The offering is expected to close on or about April 4, 2019 and is subject to certain closing conditions including approval by the Toronto Stock Exchange.

The Class A Shares will be offered at a price of $8.10 per Class A Share for a distribution rate of 14.8% on the issue price, and the Preferred Shares will be offered at a price of $10.00 per Preferred Share for a yield to maturity of 5.46%. The closing price on the TSX for each of the Class A and Preferred Shares on March 26, 2019 was $8.23 and $10.17, respectively.

 

Stock Name Life & Banc Split
Stock Symbol LBS
Exchange TSX, Toronto Stock Exchange
Issuer Life & Banc Split Corp.
Offering Preferred Shares Class A Shares
Amount Equal number of Preferred Shares and Class A Shares
Issue Price $10.00 per Preferred Share $8.10 per Class A Share
Closing Date March 28, 2019
Settlement Date April 4, 2019
Underwriter RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and Scotiabank

 

 

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