LSC.PR.C: Capital Unit Dividend Suspended

Lifeco Split Corporation has announced:

In line with the Capital Share dividend policy, Lifeco has determined not to pay a Capital Share dividend this quarter, as a result of the downside asset coverage on the Preferred Shares falling below 1.3 times during the quarter. Any excess dividends received on the underlying portfolio securities minus the distributions payable on the Preferred Shares and all administrative and operating expenses will be reinvested in short-term debt securities or underlying portfolio securities.

Asset coverage is 1.1+:1 as of 2/26. PrefBlog reported the change in policy on January 8 … and now this policy has been applied.

LSC.PR.C was downgraded to Pfd-3 in the recent DBRS Mass Downgrade, which was the last mention of this issue on PrefBlog.

LSC.PR.C is not tracked by HIMIPref™.

Update, 2010-3-24: The dividend was reinstated in July, 2009.

This entry was posted on Thursday, March 5th, 2009 at 7:52 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.

One Response to “LSC.PR.C: Capital Unit Dividend Suspended”

  1. LSC.PR.C Considering Extending Term « PrefBlog says:
    March 24, 2010 at 6:24 pm

    […] is not tracked by HIMIPref™. LSC.PR.C was last mentioned on PrefBlog when the capital unit dividend was suspended (it has since been […]

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