| Prime Rate Plus
Corporation is a high quality portfolio consisting of six Canadian Banks.
The portfolio shares offer an attractive dividend yield, continued earnings
growth and have a strong history of capital appreciation. The company
offers two classes of floating rate securities. The distribution
amount will vary with the prevailing Prime Rate in Canada. Investors
will benefit from increased distributions through a period of rising interest
rates.
Portfolio Holdings:
| Issuers |
|
| Bank of Montreal |
National Bank of Canada |
| The Bank of Nova Scotia |
Royal Bank of Canada |
| Canadian Imperial Bank of Commerce |
The Toronto-Dominion Bank |
Shares held within the Portfolio are expected to range
between 5-20% in weight but may vary from time to time.
Objectives
Preferred Shares:
(i) to provide holders of the Preferred Shares with
cumulative preferential floating rate monthly cash dividends at a
rate per annum equal to the Prime Rate plus 0.75% (min 5%, max 7%)
(ii) on or about December 1, 2012 (termination date),
to pay the holders of the Preferred Shares the original issue price of
those shares.
Class A Shares:
(i) to provide holders of the Class A Shares with regular
floating rate monthly cash distributions targeted to be at a rate per
annum equal to the Prime Rate plus 2.0% (min 5%, max 10%)
(ii) on or about December 1, 2012 (termination date),
to pay the holders of Class A Shares at least the original issue price
of those shares.
| Preferred Share Highlights |
Class A Share Highlights |
Cumulative monthly dividends at Prime
Rate plus 0.75% annually (min 5%, max 7%)
Quality investment in Canadian Banking sector
Strong downside protection and asset coverage
P2 DBRS Rating
Attractive Yield
Non-Callable |
Monthly cash distributions at Prime
Rate plus 2.0% annually (min 5%, max 10%)
Quality investment in Canadian Banking sector
Capital appreciation potential
Attractive alternative to other income vehicles
Tax efficient distributions |
|
