Brompton Split Banc Corp. Raises $55.1 Million Through Preferred Share Offering on TSX

Offering Overview and Pricing Details

On July 23, 2026, Brompton Split Banc Corp. announced the completion of its treasury preferred share offering, raising roughly $55.1 million in gross proceeds. The Preferred Shares were priced at $10.35 each with an annualized yield of 6.0% at the offering price.

Trading of the Preferred Shares began on the Toronto Stock Exchange under the existing ticker SBC.PR.A, providing investors with liquidity and access to the fund’s investment approach. The pricing and yield structure align with current interest rate conditions, offering investors a stable income stream alongside potential capital gains.

Underwriting Syndicate and Distribution Network

The offering was underwritten by a broad syndicate of 16 financial institutions. Leading the group were RBC Capital Markets, CIBC Capital Markets, National Bank Financial Inc., and Scotiabank, facilitating widespread market distribution across Canada.

Additional syndicate members included Hampton Securities Limited, Canaccord Genuity Corp., BMO Capital Markets, Raymond James Ltd., TD Securities Inc., iA Private Wealth Inc., CI Investment Services Inc., Manulife Wealth Inc., Research Capital Corporation, Ventum Financial Corp., and Wellington-Altus Private Wealth, Inc. The participation of multiple dealers underscores strong investor demand and the offering’s scale.

Portfolio Strategy and Canadian Bank Sector Exposure

Brompton Split Banc Corp. invests approximately equally in common shares of Canada’s six largest banks: Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Bank of Montreal. This diversified exposure provides broad representation of Canada’s major financial institutions.

The fund’s mandate allows up to 10% of portfolio assets to be invested in global financial companies, enabling enhanced diversification and growth potential beyond the Canadian banking sector when market conditions are favorable. This strategy balances stability with opportunities for capital appreciation.

Historical Returns and Investor Performance

Through June 30, 2026, the fund reported compound annual returns for its Preferred Shares of 6.4% over one and three years, 6.0% over five years, and 5.5% over ten years. These unaudited returns assume reinvestment of all cash distributions at the redemption price.

Investors are cautioned that past performance does not guarantee future results. The reported returns include changes in share value and reinvested distributions but exclude sales, redemption, distribution, optional charges, and income taxes payable by securityholders.

Trading Liquidity and Market Considerations

The Preferred Shares trade on the Toronto Stock Exchange, offering exchange-traded liquidity. However, investors typically incur brokerage fees when buying or selling on the TSX or alternative Canadian trading platforms. Market conditions may cause shares to trade above or below net asset value, affecting transaction prices.

This pricing dynamic is typical for exchange-traded funds and closed-end investment vehicles. Prospective investors should be aware that market prices may diverge from the fund’s net asset value, and bid-ask spreads can impact execution costs.

Fund Management and Brompton’s Investment Approach

Brompton Funds Limited, with over 25 years of experience serving Canadian investors, emphasizes low management fees, diversified performance-driven strategies, and attractive income and growth solutions tailored to various market cycles.

The Brompton Split Banc Corp. fund applies this philosophy to the Canadian banking sector by offering preferred share exposure to a portfolio of the country’s largest banks, providing a defined-income investment with financial sector participation. Brompton’s established operational expertise supports management of retail and institutional funds.

Ongoing Fees and Expense Information

The fund’s disclosure indicates ongoing fees and expenses associated with ownership, though specific management fees and expense ratios are detailed in regulatory filings available on SEDAR+.

Investors should consult the fund’s prospectus and regulatory documents at www.sedarplus.ca for comprehensive information on costs, risks, and fund features before investing. Understanding the full fee structure is critical to evaluating potential net returns.

Regulatory Disclosures and Cross-Border Restrictions

The offering is subject to Canadian securities regulations. The Preferred Shares have not been registered under the U.S. Securities Act of 1933, as amended, and cannot be offered or sold in the U.S. without registration or an applicable exemption, reflecting cross-border regulatory requirements.

Forward-looking statements included in the announcement contain standard disclaimers noting that actual results may differ materially and investors should not overly rely on such projections, consistent with Canadian securities disclosure practices.

Investment Fund Risks and Market Environment

The fund’s disclosures emphasize that investment values fluctuate and past performance may not be indicative of future results. This reflects the nature of open-ended and closed-end funds, where share prices vary with portfolio holdings and market dynamics.

The successful completion of this $55.1 million preferred share offering highlights Brompton Split Banc Corp.’s capital raising capability and market acceptance of its investment strategy. Pricing at $10.35 per share with a 6.0% yield aligns with current Canadian preferred share market conditions and the risk-return profile of Canadian bank sector exposure.