PrefBlog

Morgan Meighan has announced that:

Canadian General Investments, Limited (the “Company”) today announced that it has provided notice to holders of its $60,000,000 5.40% Cumulative Redeemable Class A Preference Shares, Series 1 that the Company will redeem all of such Shares on October6, 2008 for the redemption price of $25.00 per share plus accrued and unpaid dividends (from and including the last scheduled dividend payment date, September15, 2008, to but excluding the date of redemption, and being in the amount of $0.07767 per share), less any required withholding tax.

This is the first date that the issue becomes retractible, according to the prospectus:

On and after October 5, 2008, Canadian General Investments, Limited (“CGI” or the “Corporation”) may, on not less than 30 nor more than 60 days’ notice, redeem for cash the Series 1 Shares in whole or in part, at the Corporation’s option, at $25.00 per share together with all accrued and unpaid dividends to the date of redemption. On and after October 5, 2003 the Corporation may, on not less than 30 nor more than 60 days’ notice redeem for cash all but not less than all of the Series 1 Shares upon payment of a redemption price equal to the higher of the Yield Price (as defined) and $25.00 per share together with accrued and unpaid dividends to the date of redemption. On and after October 5, 2008, the Series 1 Shares will be redeemable for cash, at the option of the holder, for $25.00 per share, plus accrued and unpaid dividends to the date of retraction.

CGI.PR.A is tracked by HIMIPref™. I consider it to be a SplitShare but it is in the “Scraps” index due to volume concerns.

Update: Morgan Meighan has issued a press release:

Canadian General Investments, Limited (the “Company”) today completed the previously announced redemption of its $60,000,000 5.40% Cumulative Redeemable Class A Preference Shares, Series 1. This redemption is in accordance with the terms of the governing short form prospectus. The aggregate amount of $60,186,480 (including accrued and unpaid dividends from September 15, 2008) was funded through the sale of portfolio securities.

… but the TMX website continues to report trading. I don’t know what the story on this one’s all about!

This entry was posted on Thursday, August 7th, 2008 at 5:36 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.