PrefBlog

Faircourt Asset Management has announced:

In connection with the annual redemption of the Trust, 483,911 Trust Units were submitted for redemption without matching Preferred Securities. Based on the terms of the annual redemption as detailed in the Final Prospectus dated February 27, 2006, and in order to maintain appropriate balance in the Trust between the Trust Units and Preferred Securities, the Manager announces that $4,839,110 in aggregate principal amount of the Trust’s 5.75% outstanding Preferred Securities (the “Preferred Securities”) will be redeemed on October 22, 2007 (the “Redemption Date”) at a price of $10.5347 for each $10.00 principal amount of Securities, being equal to the aggregate of (i) $10.5000 (the “Redemption Price”), and (ii) all accrued and unpaid interest hereon to but excluding the Redemption Date. The notice date of the Preferred Securities redemption is October 3, 2007. Unitholders who submitted unmatched Trust Units will receive $10.5308 per Trust Unit ($11.0308 Net Asset Value per Trust Unit less the $0.5000 call premium on the Preferred Securities)

Not bad, considering that FCS.PR.A closed today at 9.90-05 and the amount called represents about one-sixth of the outstanding!

FCS.PR.A is not tracked by HIMIPref™.

This entry was posted on Tuesday, October 2nd, 2007 at 9:28 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.