Claymore Investments, Inc. today announced that Big Bank Big Oil Split Corp. has completed its initial public offering raising gross proceeds of $68 million.
Big Bank’s capital shares began trading Friday, June 16, under the symbol BBO and the Preferred Shares began trading under the symbol BBO.PR.A on the Toronto Stock Exchange.
The offering was made in each of the provinces and territories in Canada through a syndicate of investment dealers led by CIBC World Markets Inc., RBC Capital Markets, Scotia Capital Inc., and including TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Desjardins Securities Inc., HSBC Securities Inc., Raymond James Ltd., Berkshire Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp., Dundee Securities Corp., MGI Securities Inc. and Wellington West Capital Inc.
Big Bank will invest in a diversified portfolio of two of Canada’s strongest industry sectors: the big six banks; and the 10 biggest Canadian oil and gas companies utilizing a split share structure. Big Bank will invest on an equal-weighted basis and provide a low fee approach to the underlying sector.
The investment objective for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions in the amount of 13.125¢ per preferred share representing a yield on the issue price of the preferred shares of 5.25% per year.
The investment objective for the capital shares is to provide holders with regular monthly cash distributions targeted to be 5¢ per capital share representing a yield on the issue price of the Capital Shares of 4% per year and the opportunity for growth in net asset value.
The first distributions of the capital shares are scheduled to be paid to shareholders of record on July 31, and the first distributions of the preferred shares are scheduled to be paid to Shareholders of record on September 30.
Claymore Investments, Inc. will be responsible for the administration of the Big Bank. Claymore is a wholly owned subsidiary of Claymore Group, Inc., a financial services and asset management company based in the Chicago, Illinois area. Claymore Group entities provide supervision, management, servicing or distribution on over US$13 billion in assets.
Big Bank Big Oil closes $68 million IPO
Diversified portfolio includes the big six banks and the 10 biggest Canadian oil and gas companies
- By: IE Staff
- June 19, 2006 June 19, 2006
- 12:45