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TORONTO, Nov. 6, 2024 /CNW/ - (TSX: PIC.PR.A) – Premium Income Corporation (the "Fund") is pleased to announce that it has completed the previously announced treasury offering of 4,350,000 preferred shares (the "Preferred Shares") for gross proceeds of approximately $65,250,000. The Preferred Shares will trade on the Toronto Stock Exchange under the existing symbol PIC.PR.A.
The Preferred Shares were offered at a price of $15.00 per Preferred Share representing a yield on the original issue price of 8.50%.
The Fund invests in a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the Fund's portfolio, the Fund will selectively write covered call options in respect of some or all of the common shares in the Fund's portfolio. The manager and investment manager of the Fund is Mulvihill Capital Management Inc.
The Preferred Shares pay fixed cumulative preferential monthly cash distributions in the amount of $0.10625 ($1.275 per annum) per Preferred Share representing a yield of 8.50% on the original issue price of $15.00.
The syndicate of agents for the offering was 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
SOURCE Premium Income Corporation