Life & Banc Split Corp | Preferred Shares (LBS.PRA.CA)
Prospectus excerpt: This prospectus qualifies the issuance of Preferred Shares and Class A Shares of Life & Banc Split Corp. The Preferred Shares and the Class A Shares are offered separately but will be issued only on the basis that an equal number of each class of shares will be issued and outstanding.
The Company has been created to provide investors with a diversified investment in Canadian banks and life insurance companies utilizing a split share structure on a low cost basis. The big six Canadian banks and the four largest Canadian life insurance companies have a history of strong earnings growth, which has resulted in increases in their dividend rates and capital appreciation. Class A Shareholders will receive the benefits of high monthly cash distributions, the potential for capital appreciation and low management fees through an equally-weighted leveraged investment in the Canadian banks and life insurance companies. Preferred Shareholders will receive attractive quarterly distributions supported by the high credit quality of the underlying assets. The Preferred Shares have been provisionally rated Pfd-2 by Dominion Bond Rating Service Limited.
Life & Banc Split is a mutual fund corporation. Co.'s investment objectives are to provide holders of preferred shares with fixed, cumulative, preferential quarterly cash distributions in the amount of C$0.13125 per share and to return the original issue price to shareholders on Nov 29, 2013; and to provide holders of class A shares with regular monthly cash distributions targeted to be C$0.10 per share and with the opportunity for growth in net asset value per share. As of Dec 31 2012, Co. had total investment portfolio and total assets amounted to C$221,148,572 and C$225,786,743 respectively.