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TORONTO, April 22, 2025 (GLOBE NEWSWIRE) -- (TSX: PGIC; PGIC.PR.A) – Premium Global Income Split Corp. (the “Fund”) is pleased to announce it is undertaking an overnight treasury offering of Preferred Shares and Class A Shares.
The sales period for the overnight offering will end at 9:00 am ET tomorrow, April 23, 2025. The offering is expected to close on or about April 30, 2025 and is subject to certain conditions including approval by the Toronto Stock Exchange (“TSX”). The Preferred Shares will be offered at a price of $10.35 per Preferred Share representing a yield of 7.25% and the Class A Shares will be offered at an indicative price of $6.40 per Class A Share to yield 15.00%. The closing prices on the TSX for the Preferred Shares and Class A Shares on April 22, 2025 were $10.59 and $6.98, respectively. 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 Fund (calculated as at April 17, 2025).
The Fund invests in a diversified portfolio of primarily large capitalization global equity securities actively selected by its manager and investment manager, Mulvihill Capital Management Inc. (“Mulvihill”). To enhance the income generated by the Fund’s portfolio and to reduce volatility, the Fund employs an active covered call writing strategy and may write cash covered put options in respect of securities in which it is permitted to invest. The Fund may also invest up to 100% of its net assets in other public investment funds (including investment funds managed by Mulvihill). In addition, the Fund is exposed to securities traded in foreign currencies and may, at Mulvihill’s discretion, enter into currency hedging transactions to reduce the effects of changes in the value of foreign currencies relative to the value of the Canadian dollar.
The Preferred Shares pay fixed cumulative preferential monthly cash distributions in the amount of $0.0625 ($0.75 per annum) per Preferred Share representing a yield of 7.50% on the original issue price of $10.00. The Class A Shares currently pay monthly distributions in the amount $0.08 ($0.96 per annum) per Class A Share.
The syndicate of agents for the offering is being co-led by National Bank Financial Inc., CIBC Capital Markets, RBC Capital Markets and Scotiabank.
For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172, email at info@mulvihill.com or visit www.mulvihill.com
John Germain, Senior VP & CFO
Mulvihill Capital Management Inc.
121 King Street West
Suite 2600
Toronto, Ontario, M5H 3T9
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions “intend”, “will” and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect the Fund’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Fund undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
A shortform base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The Fund intends to file a supplement to the short form base shelf prospectus, and investors should read the shortform base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada.
Commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
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.
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.
