Middlefield Announces Intention to Convert International Clean Power Dividend Fund Into Infrastructure Dividend Split Corp

TORONTO, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Middlefield Limited (the “Manager”), the manager of International Clean Power Dividend Fund (“CLP”), is pleased to announce that CLP intends to merge (the “Merger”) into Infrastructure Dividend Split Corp. (“Infrastructure Split Corp.”), a split share corporation to be formed in connection with the Merger, with unitholders of CLP becoming Class A shareholders of Infrastructure Split Corp. In conjunction with the Merger, Infrastructure Split Corp. plans to undertake an offering of a number of preferred shares (the “Preferred Shares”) approximately equal to the number of Class A shares that are outstanding immediately following the Merger. Terms of the Preferred Shares will be announced at least 60 days prior to the Preferred Share offering and will be included in an information circular distributed to unitholders in advance of the Meeting (as defined below).

The investment strategy of Infrastructure Dividend Split Corp. will be to invest in an actively managed portfolio of approximately 15 dividend-paying issuers operating in the infrastructure sector that Middlefield Capital Corporation (the “Advisor”), the investment advisor of CLP and Infrastructure Split Corp., believes are currently undervalued and well-positioned to benefit from the Advisor’s outlook for a gradual reduction in interest rates, the continuation of global decarbonization, and favourable demographics (such as growing middle class and urbanization).

Infrastructure Dividend Split Corp.’s investment objectives will be to provide:

Holders of Class A shares with:

(i) non-cumulative monthly cash distributions; and

(ii) the opportunity for capital appreciation through exposure to Infrastructure Dividend Split Corp.’s portfolio; and

Holders of Preferred shares with:

(i) fixed cumulative preferential quarterly cash distributions; and

(ii) a return of the original issue price of $10.00 to holders upon maturity.

Infrastructure Split Corp.’s investment objectives and strategies will differ from those of CLP, including as a result of Infrastructure Split Corp.’s investment objectives and strategies not referring to environmental, social, and governance (“ESG”) considerations. Infrastructure Split Corp. will continue to consider ESG factors alongside other investment characteristics when selecting issuers for inclusion in its portfolio, but will not be constrained by such considerations. The Manager believes that the new objectives and strategies will provide Infrastructure Split Corp. with greater flexibility and a broader investment universe than those of CLP, which the Manager believes will ultimately lead to better returns for investors.