The Company was created to invest, on an approximately equally weighted basis, in a portfolio of common shares of the six largest Canadian banks - 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.

The Company’s investment objectives with respect to the Preferred Shares are:

1. to provide Preferred Shareholders with fixed cumulative preferential quarterly cash distributions in the amount of $0.1625 per Preferred Share ($0.65 per annum representing an annual yield of 6.5% based on the original $10 issue price of a Preferred Share); and
2. to return the original issue price to Preferred Shareholders at the time of redemption of such shares on or about January 15, 2016.

The Preferred Shares have been provisionally rated Pfd-2 (low) by DBRS Limited.

The Company’s investment objectives with respect to the Class A Shares are:

1. to provide Class A Shareholders with the opportunity to participate in the performance of the Portfolio on a leveraged basis; and
2. to benefit from any increase in the dividends from the securities in the Portfolio.

At closing the Manager issued a note to the Company in an amount equal to the fees and expenses associated with the Offering. The Note is used to reimburse the Company for the expenses of the Offering and will be repaid over approximately seven years with interest being paid at the prime rate in an amount approximately equal to 1.00% of NAV per annum.