Core North American Dividend Split Corp. files preliminary prospectus



    TORONTO, Jan. 30 /CNW/ - Core North American Dividend Split Corp. (the
"Company") is pleased to announce that it has filed and received a receipt for
its preliminary prospectus from the securities regulatory authority in each of
the provinces of Canada in connection with an initial public offering of Class
A Shares and Preferred Shares (the "Shares") at a price of $15.00 per Class A
Share and $10.00 per Preferred Share. The offering is expected to close in
mid-March 2007.
    The Company will invest in a blue-chip portfolio consisting of large
capitalization, dividend-paying North American companies across multiple
industry sectors that have strong fundamentals and excellent long-term track
records of earnings growth, dividend growth and share price appreciation (the
"Core North American Dividend Portfolio"). The Core North American Dividend
Portfolio will initially comprise the following issuers:

    
    TSX Listed (Approximately 50%):      NYSE Listed (Approximately 50%):
    Bank of Montreal                     3M Company
    The Bank of Nova Scotia              Bank of America Corporation
    Canadian Imperial Bank of Commerce   Citigroup Inc.
    Husky Energy Inc.                    ConocoPhillips
    Manulife Financial Corporation       Edison International
    Royal Bank of Canada                 Home Depot Inc.
    Russel Metals Inc.                   Johnson & Johnson
    Teck Cominco Limited                 McDonald's Corporation
    The Toronto-Dominion Bank            PepsiCo Inc.
                                         United Parcel Service, Inc.
                                         Wachovia Corporation
    

    The investment objectives for the Class A Shares are: (i) to provide
holders of Class A Shares with monthly cash distributions in an amount
targeted to be 6.00% per annum on the net asset value ("NAV") of the Class A
Shares; and (ii) to preserve and grow the NAV per Class A Share.
    The investment objectives for the Preferred Shares are: (i) to provide
holders of Preferred Shares with fixed cumulative preferential quarterly cash
distributions in the amount of $0.125 per Preferred Share ($0.50 per year)
representing a yield on the issue price of the Preferred Shares of 5.00% per
annum; and (ii) to return the original issue price of $10.00 per Preferred
Share to holders of Preferred Shares at the time of redemption of such shares
on June 30, 2014.
    The Company's portfolio will be actively managed by Mulvihill Capital
Management Inc. To generate additional returns above the dividend income
earned on the portfolio, the Company will, from time to time, write covered
call options in respect of some or all of the securities in the portfolio.
    The offering is being made through a syndicate of investment dealers
co-led by RBC Capital Markets and CIBC World Markets Inc. that includes Scotia
Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National Bank
Financial Inc., HSBC Securities (Canada) Inc., Blackmont Capital Inc.,
Desjardins Securities Inc., Dundee Securities Corporation, Canaccord Capital
Corporation, Raymond James Ltd., Berkshire Securities Inc. and Wellington West
Capital Inc.





For further information:

For further information: John Mulvihill, President and CEO; Don Biggs,
Senior Vice-President; Sheila Szela, Vice-President, Finance and CFO;
Mulvihill Structured Products, A member of the Mulvihill Capital Management
Inc. Group of Funds, 121 King Street West, Suite 2600, Toronto, Ontario M5H
3T9, (416) 681-3966, (800) 725-7172, www.mulvihill.com, hybrid@mulvihill.com

Organization Profile

CORE NORTH AMERICAN DIVIDEND SPLIT CORP.

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