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.

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

  1. […] 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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