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Dividend 15 Split Corp II Announces Overnight Offering

December 13, 2016 3:28 PM EST

TORONTO, ONTARIO -- (Marketwired) -- 12/13/16 -- Dividend 15 Split Corp. II (the "Company") is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets, Scotia Capital Inc., and will also include BMO Capital Markets, TD Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., Raymond James, Desjardins Securities Inc., Echelon Wealth Partners, Mackie Research Capital Corporation and Manulife Securities Incorporated.

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% on the issue price and the Class A Shares will be offered at a price of $7.50 per Class A Share to yield 16.00% on the issue price. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on December 12, 2016 was $10.31 and $7.75, respectively.

Since inception of the Company, the aggregate dividends paid on the Preferred Shares have been $10.90 per share and the aggregate dividends paid on the Class A Shares have been $5.27 per share, for a combined total of $16.17 unit. All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the Company to invest in an actively managed portfolio of dividend-yielding common shares which includes each of the 15 Canadian companies listed below:


  Bank of Montreal         Enbridge Inc.            TELUS Corporation
  The Bank of Nova Scotia  Manulife Financial Corp. Thomson-Reuters
                                                    Corporation
  BCE Inc.                 National Bank of Canada  The Toronto-Dominion
                                                    Bank
  Canadian Imperial Bank   Royal Bank of Canada     TransAlta Corporation
   of Commerce
  CI Financial Corp.       Sun Life Financial Inc.  TransCanada Corporation

The Company's investment objectives are:

Preferred Shares:


i.  to provide holders of the Preferred Shares with fixed, cumulative
    preferential monthly cash dividends in the amount of $0.04375 per
    Preferred Share to yield 5.25% per annum on the original issue price;
    and
ii. on or about December 1, 2019, to pay the holders of the Preferred Shares
    the original issue price of those shares.

Class A Shares:


i.  to provide holders of the Class A Shares with regular monthly cash
    dividends currently targeted to be $0.10 per Class A; and
ii. on or about December 1, 2019, to pay the holders of Class A Shares at
    least the original issue price of those shares.

The sales period of this overnight offering will end at 9:00 a.m. (EST) on December 14, 2016.

A preliminary short form prospectus containing important information relating to the Preferred Shares and the Class A Shares has been filed with securities commissions or similar authorities in all provinces of Canada. The preliminary short form prospectus is still subject to completion or amendment. Copies of the preliminary short form prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the underwriters listed above. There will not be any sale or any acceptance of an offer to buy the Preferred Shares or the Class A Shares until a receipt for the final short form prospectus has been issued.

Contacts:
Investor Relations:
1-877-478-2372
Local: 416-304-4443
www.dividend15.com
[email protected]

Source: Dividend 15 Split Corp. II



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