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Life & Banc Split Corp. Completes Treasury Offering

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Not for distribution to U.S. newswire services or for dissemination in the United States.

TORONTO, Jan. 27, 2021 (GLOBE NEWSWIRE) -- (TSX: LBS, LBS.PR.A) Life & Banc Split Corp. (the “Company”) is pleased to announce that it has completed a treasury offering of class A shares and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively) for aggregate gross proceeds of approximately $53.8 million. The Class A Shares and Preferred Shares will trade on the Toronto Stock Exchange under the existing symbols LBS (Class A Shares) and LBS.PR.A (Preferred Shares).

The Class A Shares were offered at a price of $7.80 per Class A Share for a distribution rate of 15.4% on the issue price, and the Preferred Shares were offered at a price of $10.15 per Preferred Share for a yield to maturity of 5.1%.(1) The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (“Unit”) prior to the date of the offering, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

The syndicate of agents for the offering was led by RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and Scotiabank and includes BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., Hampton Securities Limited, Raymond James Ltd., Richardson Wealth Limited, Echelon Wealth Partners Inc., iA Private Wealth Inc., Desjardins Securities Inc., and Mackie Research Capital Corporation.

The Company invests in a portfolio (the “Portfolio”) consisting of common shares of the six largest Canadian banks and the four major publicly traded Canadian life insurance companies:

Bank of Montreal

Great-West Lifeco Inc.

National Bank of Canada

The Bank of Nova Scotia

Canadian Imperial Bank of Commerce

Royal Bank of Canada

iA Financial Corporation Inc.

The Toronto-Dominion Bank

Sun Life Financial Inc.

Manulife Financial Corporation

About Brompton Funds

Founded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including TSX traded closed-end funds and exchange-traded funds. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.

(1) See Performance table below. No cash distributions will be paid on the Class A Shares if, after the payment of a cash distribution by the Company, the net asset value per Unit (consisting of 1 Class A Share and 1 Preferred Share) would be less than $15.00.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Company on the TSX or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the Company and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Company in its public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Life & Banc Split Corp.

Compound Annual NAV Returns to December 31, 2020

1-Yr

3-Yr

5-Yr

10-Yr

S.I.

Class A Shares (TSX: LBS)

(13.5%)

(2.5%)

10.6%

11.6%

7.9%

Preferred Shares (TSX: LBS.PR.A)

5.6%

5.4%

5.2%

5.2%

5.2%

Life & Banc Split Corp. - Unit

(2.4%)

1.9%

7.7%

8.4%

6.5%

Returns are for the periods ended December 31, 2020. Inception date October 17, 2006. The table shows the Company’s compound return on a Class A Share, Preferred Share and Unit for each period indicated.

Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.


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