Brompton Split Banc Corp. Announces New Preferred Share Distribution Rate

TORONTO, Sept. 26, 2022 (GLOBE NEWSWIRE) -- (TSX: SBC, SBC.PR.A) Brompton Split Banc Corp. (the “Fund”) announces that the distribution rate for the Preferred Shares for the new 5-year term from November 30, 2022 to November 29, 2027 will be $0.625 per annum (6.25% on the original issue price of $10) payable quarterly. The new distribution rate represents a $0.125 increase per annum from the previous $0.50 distribution rate. The Preferred Share distribution rate is based on current market rates for preferred shares with similar terms. In addition, the Fund intends to maintain the targeted monthly Class A Share distribution rate at $0.10 per Class A Share. The new 5-year term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until November 29, 2027. Since inception on November 15, 2005 to August 31, 2022, the Preferred share has delivered an attractive 5.0%⁽¹⁾ per annum return.

Since inception to August 31, 2022, Class A shareholders have received cash distributions of $19.75 per share, which when combined with capital appreciation represents a total return of 10.7% per annum⁽¹⁾. Class A shareholders have the option to benefit by reinvesting their cash distributions in a distribution reinvestment plan (“DRIP”) which is commission free to participants. Class A shareholders can enroll in the DRIP program by contacting their investment advisor.

Brompton Split Banc Corp. invests, on an approximately equal weighted basis in a portfolio consisting of common shares of the six largest Canadian banks (currently, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank). In addition, the Company may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purposes of enhanced diversification and return potential.

In connection with the extension, shareholders who do not wish to continue their investment in the Fund, will be able to retract Preferred Shares or Class A Shares on November 29, 2022 pursuant to a special retraction right and receive a retraction price that is calculated in the same way that such price would be calculated if the Fund were to terminate on November 29, 2022. Pursuant to this option, the retraction price may be less than the market price if the share is trading at a premium to net asset value. To exercise this retraction right, shareholders must provide notice to their investment dealer by October 31, 2022 at 5:00 p.m. (Toronto time). Alternatively, shareholders may sell their Preferred Shares and/or Class A Shares through their securities dealer for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.