DBRS Provisionally Rates Global Champions Split Corp. Class A Preferred Shares, Series 1 Pfd-2 (low)

DBRS has today assigned a provisional rating of Pfd-2 (low) to the Class A Preferred Shares, Series 1 (the Preferred Shares) to be issued by Global Champions Split Corp. (the Company). The Preferred Shares will be offered at an issue price of $25.00.

Net proceeds from the initial offering will be used to invest in a portfolio of common shares (the Portfolio) of 15 international large capitalization companies with a strong global presence. The majority of the Portfolio’s investments will be denominated in U.S. dollars, and any exposure to currencies other than the U.S. dollar is expected to be hedged back to the U.S. dollar. Dividends received on the Portfolio securities denominated in currencies other than the U.S. dollar may – but are not required to – be hedged back to the U.S. dollar.

The provisional rating is primarily based on the expected level of downside protection available to holders of the Preferred Shares (49.0%), the Preferred Share distribution coverage ratio (1.27 times), the credit quality of the underlying companies in the indicative Portfolio and disclosure included in the preliminary prospectus.

The assignment of final rating is subject to receipt by DBRS of final portfolio-related information that is consistent with the information DBRS has already reviewed and the settlement of material transaction documents in a manner acceptable to DBRS commensurate with the relevant rating level and in accordance with the applicable DBRS methodologies.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Canadian Split Share Companies and Trusts (August 2012), which can be found on our website under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.