New stock arbitrage— Split Banc Corp.

Brompton Split Banc Corp is a Canadian based mutual fund corporation. The firm invests in a common share portfolio of the Canadian banks. Its investment objective for preferred shares holders is to provide fixed, cumulative, preferential quarterly cash distributions and to return the original issue price at maturity, and for class A shares holders are to provide monthly cash distributions and the opportunity for growth in Net Asset Value per share.

 

Split Banc Corp. announced on February 3rd, 2020 that it’s 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 Tuesday, February 4, 2020. The offering is expected to close on or about February 13, 2020. The Class A Shares will be offered at a price of $13.00 per Class A Share and the Preferred Shares will be offered at a price of $10.25 per Preferred Share. The closing price on the TSX for each of the Class A and Preferred Shares on January 31, 2020 was $13.11 and $10.60, respectively.