Brompton Lifeco Split Corp. Establishes At-The-Market Equity Program

TORONTO, May 02, 2024 (GLOBE NEWSWIRE) -- Not for distribution to U.S. newswire services or for dissemination in the United States.

(TSX: LCS, LCS.PR.A) Brompton Lifeco Split Corp. (the “Fund”) is pleased to announce it has established an at-the-market equity program (“ATM Program”) that allows the Fund to issue class A shares and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively) to the public from time to time, at the Fund’s discretion. Any Class A Shares or Preferred Shares sold in the ATM Program will be sold through the Toronto Stock Exchange (the “TSX”) or any other marketplace in Canada on which the Class A Shares and Preferred Shares are listed, quoted or otherwise traded at the prevailing market price at the time of sale. Sales of Class A Shares and Preferred Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated April 30, 2024 (the “Equity Distribution Agreement”) with RBC Capital Markets (the “Agent”).

Sales of Class A Shares and Preferred Shares will be made by way of “at-the-market distributions” as defined in National Instrument 44-102 Shelf Distributions on the TSX or on any marketplace for the Class A Shares and Preferred Shares in Canada. Since the Class A Shares and Preferred Shares will be distributed at the prevailing market prices at the time of the sale, prices may vary among purchasers during the period of distribution. The ATM Program is being offered pursuant to a prospectus supplement dated April 30, 2024 to the Fund’s short form base shelf prospectus dated April 1, 2024. The maximum gross proceeds for distributions under the ATM Program will be $75,000,000 for each of the Class A Shares and Preferred Shares. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor or from representatives of the Agent and are available at www.bromptongroup.com.

The volume and timing of distributions under the ATM Program, if any, will be determined at the Fund’s sole discretion. The ATM Program will be effective until May 1, 2026, unless terminated prior to such date by the Fund. The Fund intends to use the proceeds from the ATM Program in accordance with the investment objectives and investment strategies of the Fund, subject to the investment restrictions of the Fund.

The Fund invests in a portfolio, on an approximately equal weighted basis, of common shares consisting of the four Canadian life insurance companies: Great-West Lifeco Inc., iA Financial Corporation Inc., Manulife Financial Corporation and Sun Life Financial Inc.

The investment objectives for the Class A Shares are to provide holders with regular monthly cash distributions targeted to be $0.075 per Class A Share and to provide the opportunity for growth in the net asset value per Class A Share.

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.175 per Preferred Share (7.0% per annum on the original $10.00 issue price) until April 27, 2029, and to return the original issue price to holders of Preferred Shares on April 27, 2029.

Over the last 10 years, the Class A Shares have delivered an 11.7% per annum total return based on NAV, outperforming the S&P/TSX Composite Index by 4.0% per annum.⁽¹⁾ The Preferred Shares have returned 6.1% per annum over the last 10 years, outperforming the S&P/TSX Preferred Share TR Index by 4.0% per annum.⁽¹⁾

About Brompton Funds

Founded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment 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 [email protected] or visit our website at www.bromptongroup.com.

(1) See Performance table below.

Returns are for the periods ended March 31, 2024, and are unaudited. Inception date October 17, 2006. The table shows the compound return on a Class A Share and Preferred Share for each period indicated compared to the S&P/TSX Composite Index (“Composite Index”) and the S&P/TSX Preferred Share TR Index (“Preferred Share Index”) (together the “Indices”). The Composite Index tracks the performance, on a market weight basis, of a broad index of large-capitalization issuers listed on the TSX. The Preferred Share Index tracks the performance, on a market‑weight basis, of a broad index of preferred shares trading on the TSX that meet the criteria relating to size, liquidity and issuer rating. The Fund invests in a passively managed portfolio of four Canadian insurance companies. The Fund is not expected to mirror the performance of Indices, which have more diversified portfolios. Further, the indices are calculated without the deduction of management fees, fund expenses and trading commissions, whereas the performance of the Fund is calculated after deducting such fees and expenses. Further, the performance of the Class A Shares is impacted by the leverage provided by the Preferred Shares.

Past performance does not necessarily indicate how the Fund will perform in the future. The information shown is based on the NAV per Class A Share and the redemption price per Preferred Share and assumes that distributions made by the Fund on the Class A Shares and Preferred Shares in the periods shown were reinvested (at the NAV per Class A Share or redemption price per Preferred Share) in additional Class A Shares or Preferred Shares of the Fund.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Fund 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 Fund 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 Fund in its public filings available at www.sedarplus.ca. 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.

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 Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. 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.