Premium Global Income Split Fund (TSX: PGIC.PR.A; PGIC) has announced a successful overnight treasury offering of Preferred Shares and Class A Shares, raising gross proceeds of approximately $30,001,099.95. The offering, co-led by National Bank Financial Inc., is expected to close on or about September 18, 2026, subject to TSX approval. The transaction expands the Fund's capital base and may attract income-focused investors given the distribution rates attached to both share classes.

Key Points

  • Premium Global Income Split Fund (TSX: PGIC.PR.A; PGIC)
  • Overnight treasury offering of 1,734,600 Preferred Shares and 1,587,993 Class A Shares completed for gross proceeds of approximately $30,001,099.95
  • Preferred Shares priced at $10.75 each; Class A Shares priced at $7.15 each; closing expected on or about September 18, 2026
  • Investors will be watching for TSX approval and the filing of the prospectus supplement before the offering closes

Offering Size, Pricing, and Expected Closing Date

The Fund issued 1,734,600 Preferred Shares at $10.75 per share and 1,587,993 Class A Shares at $7.15 per share through an overnight treasury offering. Combined, the two tranches generated gross proceeds of approximately $30,001,099.95. The transaction is expected to close on or about September 18, 2026, and remains subject to certain closing conditions, including formal approval by the Toronto Stock Exchange. Both share classes will continue to trade on the TSX under their existing symbols, PGIC.PR.A and PGIC, respectively.

Distribution Rates Attached to Each Share Class

The Preferred Shares carry fixed cumulative preferential monthly cash distributions of $0.0625 per share, equating to $0.75 per annum and representing a yield of 7.50% on the original issue price of $10.00. The Class A Shares currently pay monthly distributions of $0.08 per share, or $0.96 per annum. These distribution structures may be of particular interest to income-oriented investors evaluating the Fund's offering in the context of the current interest rate environment.

Fund Strategy and Mulvihill's Active Management Approach

Managed by Mulvihill Capital Management Inc., the Fund invests in a diversified portfolio of primarily large-capitalisation global equity securities. To enhance income and reduce volatility, Mulvihill employs an active covered call writing strategy and may write cash-covered put options. The Fund may also allocate up to 100% of its net assets to other public investment funds, including those managed by Mulvihill, and may enter into currency hedging transactions to manage exposure to foreign currency fluctuations relative to the Canadian dollar.