The net proceeds of the treasury offering will be used by the Company to invest in a portfolio of six publicly traded Canadian Banks as follows:
Bank of Montreal Canadian Imperial Bank Royal Bank of Canada of Commerce The Bank of Nova Scotia National Bank of Canada The Toronto-Dominion Bank
Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, the Company will engage in a selective covered call writing program.
The Company's objectives are to:
i. provide holders with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the prevailing Canadian prime rate plus 0.75%, with a minimum annual rate of 5.0% and a maximum annual rate of 7% based on original issue price; and ii. On or about
December 1, 2018or such other date as the Company may determine (the "termination date") to pay holders the original issue price ( $10) of those shares.
Class A Shares
i. provide holders with regular monthly cash distributions currently targeted to be at the annualized rate of 10% based upon the volume- weighted average trading price of the Class A Shares on the TSX for the last three trading days of the preceding month (effective
September 17, 2013); and ii. On the termination date to pay holders the original issue price ( $15) of those shares.
The sales period of this overnight offering is expected to end at
The syndicate of agents consists of
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Investors should read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Banc Corp.Investor Relations 416-304-4443 or Toll free: 1-877-4-Quadra (1-877-478-2372) www.primerateplus.com Source: Canadian Banc Corp.