- Real Estate Split (RS) has completed overnight offering of class A and preferred shares for gross proceeds of approximately $8.7 million
- The objectives for Class A shares are to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation
- The objectives for preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions and return original issue price of $10.00 to holders upon maturity
- Real Estate Split operates as a mutual fund company
- Real Estate Split Corp. (RS) is down 1.30 per cent, trading at C$14.40 per share at 10:53 am ET
Real Estate Split (RS) has completed overnight offering of class A and preferred shares for gross proceeds of approximately $8.7 million.
The Class A shares and preferred shares will trade on the Toronto Stock Exchange under the existing symbols RS (Class A Shares) and RS.PR.A (Preferred Shares).
Financing details
The company offered Class A shares at $14.60 per Class A share to yield 10.7 per cent and the preferred shares at $9.65 per preferred share to yield 5.4 per cent. The Class A share and preferred share offering prices were determined so as to be non-dilutive to the net asset value per unit of the company on March 22, 2023, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.
The company’s investment objectives for the:
Class A shares are to provide holders with:
- non-cumulative monthly cash distributions; and
- the opportunity for capital appreciation through exposure to the portfolio
Preferred shares are to:
- provide holders with fixed cumulative preferential quarterly cash distributions; and
- return the original issue price of $10.00 to holders upon maturity
Middlefield Capital Corporation provides investment management advice to the company.
The syndicate of agents co-led the offering. It includes CIBC Capital Markets and RBC Capital Markets, and included Canaccord Genuity Corp., National Bank Financial Inc., Scotiabank, Hampton Securities Limited, BMO Capital Markets, Raymond James Ltd., TD Securities Inc., iA Private Wealth Inc., Richardson Wealth Limited, Manulife Securities Inc., Desjardins Securities Inc., Middlefield Capital Corporation and Research Capital Corporation.
About Real Estate Split
Real Estate Split operates as a mutual fund company. The company is designed to provide investors with a diversified, actively managed, high conviction portfolio. It comprises of securities of leading North American real estate companies.
Real Estate Split Corp. (RS) is down 1.30 per cent, trading at C$14.40 per share at 10:53 am ET.