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TORONTO, June 3, 2026 /CNW/ - (TSX: PWI) (TSX: PWI.PR.A) Power & Infrastructure Split Corp. (the "Fund") is pleased to announce it is undertaking a treasury offering of class A and preferred shares (the "Class A Shares" and "Preferred Shares", respectively) (the "Offering").
The sales period for the Offering is expected to end on Thursday, June 4, 2026. The Offering is expected to close on or about June 11, 2026 and is subject to certain closing conditions including approval by the Toronto Stock Exchange ("TSX").
The Class A Shares will be offered at a price of $13.60 per Class A Share for a distribution rate of 8.8% on the issue price.(1)(2) The Preferred Shares will be offered at a price of $10.40 per Preferred Share to yield 6.2%.(2) The closing price on the TSX for each of the Class A Shares and the Preferred Shares on June 2, 2026 were $13.75 and $10.48, 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 ("NAV") per unit of the Company (calculated as at June 2, 2026), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the Offering. The Offering is being led by RBC Capital Markets.
The Company invests in a globally diversified and actively managed portfolio (the "Portfolio") consisting primarily of dividend paying securities of power and infrastructure companies selected by Brompton Funds Limited.
The investment objectives for the Class A Shares are to provide their holders with regular monthly non-cumulative cash distributions and to provide holders of Class A Shares with the opportunity for capital appreciation through exposure to the Portfolio. Over the past 5 years, the Class A Share has generated a 17.5% per annum return.(2)
The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders of Preferred Shares on May 29, 2031. The distribution rate for the term from May 30, 2026 to May 29, 2031 is $0.64 per Preferred Share per annum (6.4% on the par value of $10.00) payable quarterly. Over the past 5 years, the Preferred Share has generated a 5.1% per annum return.(2) Purchasers of Preferred Shares in this Offering will be eligible to receive the June 2026 quarterly dividend when the dividend is declared.
About Brompton Funds
For over 25 years, Brompton has been providing unique, well-conceived investments for Canadians, with a focus on low management fees, performance driven diversification strategies and attractive income and growth solutions for various market cycles. 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.
A short form 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 short form 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.
(1) No distributions will be paid on the Class A Shares if (i) the distributions payable on the Preferred Shares are in arrears, or (ii) in respect of cash distributions, after the payment of cash distributions by the Fund the net asset value ("NAV") per Unit would be less than $15.00. |
(2) Annualized yield on offer price. See Performance table below. |
Power & Infrastructure Split Corp. Compound Annual NAV Returns to May 31, 2026 | YTD | 1-Yr | 3-Yr | 5-Yr | Since
Inception |
Class A Shares (TSX: PWI) | 23.6 % | 44.8 % | 43.6 % | 17.5 % | 17.5 % |
Preferred Shares (TSX: PWI.PR.A) | 2.1 % | 5.1 % | 5.1 % | 5.1 % | 5.1 % |
Returns are for the periods ended May 31, 2026, and are unaudited. Inception date May 21, 2021. The table shows the past performance of the Fund. The performance information shown is based on NAV per Class A Share and the redemption price per Preferred Share and assumes that cash distributions made by the Fund during the periods shown were reinvested at NAV per Class A Share and the redemption price per Preferred Share in additional Class A Shares, units and Preferred Shares of the Fund. Past performance does not necessarily indicate how the Fund will perform in the future.
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 does not take into account sales, redemption, distribution or optional charges or income tax 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.
SOURCE Power & Infrastructure Split Corp.
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