PrefBlog

Allbanc Split Corp. has announced:

The Company has revised its Capital Share dividend policy and has determined that it will not pay a dividend on the Capital Shares if the Net Asset Value at the time of declaration, after giving effect to the dividend, would be less than or equal to the original issue price of the Preferred Shares. In such circumstances, any excess dividends received on the underlying portfolio securities minus the dividends payable on the Preferred Shares and all administrative, operating and income tax expenses will be reinvested in short-term debt securities or underlying portfolio securities. However, as long as Net Asset Value at the date of declaration exceeds such amount, the Company intends to pay a dividend on the Capital Shares equal to the excess of the dividends received on the portfolio securities minus the Preferred Share dividends and all administrative, operating and income tax expenses. Based on yesterday’s closing sale prices of the underlying portfolio securities and after giving effect to the Capital Share dividend, the Net Asset Value per Unit would be $30.51 or $3.76 in excess of the original issue price of the Preferred Shares.

On February 12, the NAVPU was $34.71. The last week … has not been kind.

ABK.PR.B was last mentioned on PrefBlog when it was downgraded to Pfd-3 as part of the DBRS Mass Downgrade of Split-Shares. ABK.PR.B is not tracked by HIMIPref™.

This entry was posted on Thursday, February 19th, 2009 at 7:28 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.