SL Split Corp. has announced:
that it has called 450 Preferred Shares for cash redemption on January 30, 2009 (in accordance with the Company’s Articles) representing approximately 0.046% of the outstanding Preferred Shares as a result of the special annual retraction of 157,500 Capital Shares by the holders thereof. The Preferred Shares shall be redeemed on a pro rata basis, so that each holder of Preferred Shares of record on January 29, 2009 will have approximately 0.046% of their Preferred Shares redeemed. The redemption price for the Preferred Shares will be $25.78 per share.
Holders of Preferred Shares that are on record for dividends but have been called for redemption will be entitled to receive dividends thereon which have been declared but remain unpaid up to but not including January 30, 2009.
Payment of the amount due to holders of Preferred Shares will be made by the Company on January 30, 2009. From and after January 30, 2009 the holders of Preferred Shares that have been called for redemption will not be entitled to dividends or to exercise any rights in respect of such shares except to receive the amount due on redemption.
SL Split Corp. is a mutual fund corporation created to hold a portfolio of common shares of Sun Life Financial Inc. Capital Shares and Preferred Shares of SL Split Corp. are listed for trading on The Toronto Stock Exchange under the symbols SLS and SLS.PR.A respectively.
Nice news for the holders of the 450 shares – unless the redemption breaks up their board lots and winds up costing them money! SLS.PR.A has asset coverage of 1.1+:1 and closed today at 19.50-20.99, 2×1. The prospectus states:
Preferred Shares may be surrendered for retraction at any time. Provided the Preferred Shares have been surrendered for retraction on or before the 1st day of a month, such shares will be retracted on the 15th day of such month (the Valuation Date) and retraction payments will be made on the last day of such month or where such day is not a business day, the preceding business day.
A holder retracting Preferred Shares will receive a cash price per Preferred Share retracted equal to the amount, if any, by which 95% of the Unit Value exceeds the aggregate of (i) the average cost to the Company, including commissions, of purchasing two Capital Shares in the market; and (ii) $1.00.
So …
R = 95%NAV – 2C – 1
= 95%(29.02) – 2*3.00 – 1
= 27.57 – 6 – 1
= 20.57
SLS.PR.A was downgraded to Pfd-4(low) in December by DBRS. It is not tracked by HIMIPref™.
This entry was posted on Thursday, January 15th, 2009 at 9:37 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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SLS.PR.A: Miniscule Call for Redemption
SL Split Corp. has announced:
Nice news for the holders of the 450 shares – unless the redemption breaks up their board lots and winds up costing them money! SLS.PR.A has asset coverage of 1.1+:1 and closed today at 19.50-20.99, 2×1. The prospectus states:
So …
R = 95%NAV – 2C – 1
= 95%(29.02) – 2*3.00 – 1
= 27.57 – 6 – 1
= 20.57
SLS.PR.A was downgraded to Pfd-4(low) in December by DBRS. It is not tracked by HIMIPref™.
This entry was posted on Thursday, January 15th, 2009 at 9:37 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.