TORONTO, November 2, 2008 - First Asset CanBanc Split Corp. (the "Company") is pleased to announce that it has filed its final prospectus for its offering of Preferred Shares and Class A Shares for a total maximum offering size of up to $100 million. The offering is scheduled to close on November 12, 2008. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the shares (CBU.PR.A and CBU, respectively), subject to fulfillment by the Company of the requirements of the TSX.
The Company was created to invest, on an approximately equally weighted basis, in a portfolio (the "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:
- 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
- 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 to provide Class A Shareholders with the opportunity:
- to participate in the performance of the Portfolio on a leveraged basis; and
- to benefit from any increase in the dividends from the securities in the Portfolio.
The Manager has agreed to reimburse the Company for the expenses of the offering and accordingly, it is anticipated that the initial NAV per Unit will be $25. At closing, the Manager will issue a note ("Note") to the Company in an amount equal to the fees and expenses associated with the Offering. The Note will bear interest at the prime rate and will be repaid in quarterly instalments equal to one quarter of 1.00% of NAV over a period of seven years beginning on March 31, 2009.
The syndicate of agents for this offering is being led by CIBC World Markets Inc. and RBC Dominion Securities Inc., and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., Manulife Securities Incorporated, Richardson Partners Financial Limited and Wellington West Capital Markets Inc.
For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.