As previously noted, FTN.PR.A shareholders will be meeting April 24 to vote on extending term.
The text of the actual resolution has been released:
BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:
1. The Articles of Financial 15 Split Corp. (the “Fund”) be amended to extend the termination date of the Fund to December 1, 2014.
2. The directors and officers of the Fund be and they are hereby authorized and directed to take such action and to execute and deliver all such documentation as may be necessary or desirable for the implementation of this special resolution.
3. Notwithstanding the provisions hereof, the directors of the Fund may revoke this special resolution at any time prior to the endorsement by the Director of the Certificate of Amendment under the Business Corporations Act (Ontario) giving effect hereto without further approval of the shareholders of the Fund.
If passed, this is free money for the Preferred shareholders, given that the prefs yield 5.25% of their redemption value.
[…] Well! It looks like the capital unit-holders of Financial 15 Split Corp. have balked at the proposed term extension of the fund, not wishing to finance their margin at the rate of 5.25% in dividends: Preferred Shareholders as a class voted 98.9 % in favour of the resolution, however the vote from Class A shareholders did not exceed the minimum required 66 2/3% of the votes cast in favour, and therefore the resolution was not approved at the meeting held earlier today. […]
[…] Update: See also previous commentary for FTN.PR.A […]