PrefBlog

Brompton Funds has announced:

At a special meeting of preferred and class A shareholders (“Shareholders”) of Life & Banc Split Corp. (“LBS”) held today, Shareholders approved a special resolution to extend the term of LBS for up to 5 years beyond the scheduled termination date of November 29, 2013 and thereafter for successive terms of up to 5 years as determined by the LBS board of directors. Holders of Class A Shares voted approximately 98% in favour of the extension and holders of Preferred Shares voted approximately 99% in favour of the extension. The extension allows Shareholders to continue their investment in LBS’ portfolio of common shares of six Canadian banks (Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank) and four Canadian life insurance companies (Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.). Shareholders will continue to have monthly and annual retraction rights.

In addition to the daily liquidity provided by the TSX listings, shareholders who do not wish to continue their investment may redeem either their preferred shares or class A shares on November 29, 2013 and each extension of the term thereafter on the same terms that currently exist. LBS will announce the term of the initial extension by news release no later than October 1, 2013. Further details are available in the management information circular dated March 11, 2013.

The plan was reported on PrefBlog. LBS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

This entry was posted on Monday, April 15th, 2013 at 2:02 am 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.