It will be recalled that FTU.PR.B recently extended term with a dividend boost to 10% – no gift, since the units are underwater. Shareholders had a retraction right:
In connection with the extension, the Company will offer a Special Retraction Right which will allow existing shareholders to tender one or both classes of Shares and receive a retraction price based on the November 30, 2018 net asset value per unit.
I recommended retraction, but it seems that the spirit of giving entered a lot of shareholders’ hearts during the retraction period.
Quadravest has announced:
US Financial 15 Split Corp. (“the Company”) announces a Class A share consolidation for all Class A shareholders of record on December 18, 2018. In connection with the extension of the termination date of the Company, a special retraction right was offered allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 30, 2018 net asset value per unit. In aggregate, more Preferred shares were tendered for retraction than Class A shares. The purpose of the share consolidation is to maintain the requirement that an equal number of Class A shares and Preferred shares remain outstanding.
Immediately after the special retraction payment on December 17, 2018, there will be 1,901,817 Preferred shares and 2,804,666 Class A shares outstanding. In order to restore an equal amount of shares outstanding for each class, Class A shareholders on record as at December 18, 2018 will receive approximately 0.678090368 Class A shares for each Class A share outstanding. The consolidation is a non-taxable event. The impact of the Class A share consolidation will be reflected in the next reported net asset value per unit as at December 31, 2018. Net assets of the Company after the retraction payments will be approximately $14.7 million.
The Class A shares provide for a leveraged return on the portfolio of investments and are entitled to all assets
greater than a $10 net asset value.
The Company’s Preferred shares will begin receiving an increased dividend rate of 10% annually based on the
Company’s net asset value to a maximum of $0.08333 per Preferred Share per month, effective December 1,
2018.
The company had 2,808,191 Whole Units outstanding on November 30.
This entry was posted on Thursday, December 13th, 2018 at 9:53 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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FTU.PR.B Shrinks 32%
It will be recalled that FTU.PR.B recently extended term with a dividend boost to 10% – no gift, since the units are underwater. Shareholders had a retraction right:
I recommended retraction, but it seems that the spirit of giving entered a lot of shareholders’ hearts during the retraction period.
Quadravest has announced:
The company had 2,808,191 Whole Units outstanding on November 30.
This entry was posted on Thursday, December 13th, 2018 at 9:53 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.