XMF.PR.A Reorg Completed

M Split Corp has announced (on March 23, so I’m a little late with this):

the opening net asset value per unit for the newly reorganized Company was $9.01 per unit as of the close of business on March 22, 2010. There were 2,846,795 units outstanding for total net assets of $25.6 million as at March 22, 2010. The Company will begin to initiate its full investment plan and increase its investment in Manulife common shares and its supplemental covered call writing program. Trading will begin today on the TSX under the following new stock symbols listed below:

XMF.PR.B – the Class I Preferred Share
XMF.PR.C – the Class II Preferred Share
XMF.WT – the 2011 Warrant
XMF.WT.A – the 2012 Warrant
XMF.A – the Capital Share

The following is a summary of some of the principal provisions of the Class I Preferred Shares, Class II Preferred Shares, 2011 Warrants, 2012 Warrants and Capital Shares:

Class I Preferred Shares
Each Class I Preferred Share (Symbol: XMF.PR.B) pays fixed cumulative preferential monthly dividends to yield 7.50% per annum on the $5.00 notional issue price and having a repayment objective on December 1, 2014 or such other date as the Company may be terminated (the “Termination Date”) of $5.00.

Class II Preferred Shares
Each Class II Preferred Share (Symbol: XMF.PR.C) pays distributions to yield 7.50% per annum on the $5.00 notional issue price if and when the net asset value per Unit exceeds $12.50 and having a repayment objective on the Termination Date of $5.00. Each “Unit” consists of one Class I Preferred Share, one Class II Preferred Share and one Capital Share.

2011 Warrant
Each 2011 Warrant (Symbol: XMF.WT) can be exercised to purchase one Unit for an exercise price of $10.00 per Unit at specified times until February 28, 2011.

2012 Warrant
Each 2012 Warrant (Symbol: XMF.WT.A) can be exercised to purchase one Unit for an exercise price of $12.50 per Unit at specified times until February 28, 2012.

Capital Shares
Capital Shares (Symbol: XMF.A) will continue to participate in any net asset value growth over $10.00 per Unit and dividends would be reinstated only if and when the net asset value per Unit exceeds $15.00. The dividend rate on the Capital Shares will be set by the Board of Directors of the Company at its discretion, based on market conditions. No dividend payments will be made on the Capital Shares unless all dividends on the Class I Preferred Shares and, if applicable, Class II Preferred Shares have been declared and paid.

For additional information regarding the provisions attached to the Class I Preferred Shares, Class II Preferred Shares, 2011 Warrants, 2012 Warrants and Capital Shares, reference should be made to the Company’s Management Information Circular dated December 23,2009.

The effective date and a reminder of the terms of the reorg were announced March 19:

At the opening of trading on March 23, 2010, holders of Priority Equity Shares (Symbol: XMF.PR.A) will have received the following securities in exchange for each Priority Equity Share held:

1. One $5.00 Class I Preferred Share (Symbol: XMF.PR.B) (the “Class I Preferred Share”);
2. One $5.00 Class II Preferred Share (Symbol: XMF.PR.C) (the “Class II Preferred Share”);
3. One 2011 Warrant (Symbol: XMF.WT); and
4. One 2012 Warrant (Symbol: XMF.WT.A).

As previously announced, since more Priority Equity Shares were tendered for retraction under the special retraction right than Class A Shares, the outstanding Class A Shares will effectively be consolidated (the “Consolidation”) through an adjustment to the number of Capital Shares to be issued to holders of Class A Shares in the Reorganization. The Consolidation will be implemented so that following the Reorganization, there will be an equal number of Capital Shares, Class I Preferred Shares and Class II Preferred Shares outstanding.

As a result of the Reorganization and the Consolidation, holders of Class A Shares (Symbol: XMF) will receive 0.944808 of a Capital Share (Symbol: XMF.A) in exchange for each Class A Share held.

XMF.PR.A was last mentioned on PrefBlog in the post XMF.PR.A Announces Reorg Details. XMF.PR.A was not tracked by HIMIPref™; there are no current plans to track XMF.PR.B or XMF.PR.C.

One Response to “XMF.PR.A Reorg Completed”

  1. […] shareholder to vote in favour of a term extension. As with the reorganization of XCM.PR.A and XMF.PR.A, any value at all that is offered to the Capital Unitholders comes directly out of the preferred […]

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