PrefBlog

As previously reported, PDV.PR.A was to vote on a term extension.

The company wrote to shareholders in October, 2011:

You are invited to a special meeting (the “meeting”) of shareholders of Prime Dividend Corp. (the “Company”) to be held at 11:00 am (Eastern standard time) on Thursday, November 3, 2011 at the offices of Blake, Cassels & Graydon LLP, 199 Bay Street, 40th floor, Commerce Court West, Toronto, Ontario.

The primary purpose of the meeting is to consider and vote upon a special resolution that would allow shareholders to maintain their investment beyond the scheduled termination date of December 1, 2012.

If the special resolution is approved, the termination date would initially be extended to December 1, 2018.

The Information Circular was published.

The vote was successful:

Class A Shareholders voted 96.1% in favour of the resolution and Preferred Shareholders voted 90.2% in favour of the resolution, and therefore the resolution to extend the termination date to December 1, 2018 and to provide holders with the Special Retraction Right and all other resolution items was approved at the meeting held earlier today.

There was no call for redemption on the preferreds.

In order to maintain the requirement that the same number of each class of shares remain outstanding after completion of the Special Retraction, it is expected that any required equalization adjustments will be done by making an adjustment to the number of Class A shares outstanding. Any such adjustment to the number of Class A shares held by each Class A investor will not affect the value of their investment.

The retraction right turned out to be based on a NAV of 16.76 per Unit.

DBRS notes:

Prime Dividend Corp.: On November 3, 2011, Prime Dividend Corp. (the Company) announced that 96.1% of Class A shareholders and 90.2% of preferred shareholders had approved the extension of the termination date of the Company by an additional six years from December 1, 2012, to December 1, 2018. Holders of the Class A shares and preferred shares were provided with a special retraction right that would allow them to redeem their shares on December 1, 2012, as originally intended if they do not wish to extend their investment. This resolution also allows the Board of Directors to provide subsequent fi ve-year termination date extensions along with the same retraction rights to shareholders without the need to hold a special shareholder meeting. The Board will also be able to adjust dividend distributions for future extensions to refl ect market conditions at that time.

PDV.PR.A is not tracked by HIMIPref™.

This entry was posted on Wednesday, January 18th, 2012 at 8:28 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.