Premium Income Corporation Launches $34.1 Million Preferred Share Offering

Overview

• Premium Income Corporation announced a successful overnight treasury sale of 2,085,000 preferred shares at $16.36 each for expected gross proceeds of $34.11 million.
• The fund plans to close the transaction after it files a prospectus supplement and satisfies Toronto Stock Exchange conditions.
• The preferred shares pay fixed monthly cash distributions of $0.10625 per share, or $1.275 a year, equal to an 8.5% yield on the original $15 issue price.
• Mulvihill Capital Management manages the fund, and National Bank Financial leads the syndicate of agents for this offering.
• The portfolio centers on common shares of Canada’s six largest banks, and the new securities are not registered for sale in the United States.