Dividend 15 Split Corp. Announces Exchange Offer for Common Shares of BCE Inc. or TransCanada Corporation
TORONTO, June 07, 2018 (GLOBE NEWSWIRE) -- Dividend 15 Split Corp. (the “Company”) is pleased to announce it will undertake an exchange offer for holders of BCE Inc. or TransCanada Corporation whereby the Company will offer 5.55 Class A Shares in exchange for each freely-tradable common share of BCE Inc. and 5.55 Class A Shares for each freely-tradable common share of TransCanada Corporation (the “Exchange Offer”). The current market value of the Class A Shares to be received via the Exchange Offer is $57.33 per share.
The Company will take up to a maximum combined value of $25mm of BCE Inc. and TransCanada Corporation shares in this Exchange Offer.
The Company currently holds 936,800 shares of BCE Inc. and 1,013,400 shares of TransCanada Corporation in its investment portfolio and any shares taken up in this exchange will be added to the portfolio for investment purposes only. The closing price on the TSX of DFN Class A Shares on June 6, 2018 was $10.33 and the current yield is 11.6%. As of the same date the closing prices on the TSX of BCE Inc. and TransCanada Corporation were $54.40 and $53.57, respectively.
Dividend 15 is an investment corporation that invests in a portfolio consisting of high dividend paying Canadian companies. The Company’s investment manager actively manages the Company’s investment portfolio in order to meet the Company’s investment objectives. The manager supplements the dividends received on portfolio investments by writing options in respect to some or all of the portfolio.
Since inception of the Company, distribution objectives have been met and exceeded:
- 170 consecutive regular monthly dividend payments declared
- aggregate dividends declared on the Class A Shares have been $20.50 per share (includes five special distributions of $0.25 per share, one special distribution of $0.50 per share and one special stock dividend of $1.75 per share)
- all distributions to date made in tax advantaged eligible Canadian dividends or capital gains dividends
The Company’s investment portfolio is an actively managed, high quality portfolio consisting of 15 dividend yielding Canadian companies as follows:
Bank of Montreal
Bank of Nova Scotia
BCE Inc.
CI Financial Corp.
CIBC
Enbridge Inc.
Manulife Financial
National Bank of Canada
Royal Bank
Sun Life Financial
TELUS Corporation
Thomson Reuters Corporation
Toronto-Dominion Bank
TransAlta Corporation
TransCanada Corporation
The sales period of the Exchange Offer will end at 5:00 p.m. EDT on June 15, 2018. The Exchange Offer is expected to close on or about June 28, 2018 and is subject to certain closing conditions including approval by the TSX. In conjunction with the Exchange Offer, the Company anticipates issuing an equal number of Preferred Shares to the number of Class A Shares issued under this Exchange Offer.
For further information, please contact Dividend 15 Split Corp. Investor Relations at 416-304-4443 Toll free at 1-877-4-Quadra (1-877-478-2372) or visit
A prospectus supplement to the Company’s short form base shelf prospectus dated June 1, 2018 containing important detailed information about the Preferred Shares and the Class A Shares being offered will be filed with securities commissions or similar authorities in all provinces of Canada. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the Securities Commissions or similar authorities in each of the provinces of Canada.
