NBF.PR.A: Capital Unit Dividend Reinstated

NB Split Corp. announced in February that:

The Board of Directors has determined that it will not declare a dividend on the Capital Shares for this quarter. The Board of Directors will review on a quarterly basis whether the Company will declare a dividend on the Capital Shares. Any excess of dividends received by the Company over that required to fund the Preferred Share distributions and operating expenses will be held in cash or cash equivalents by the Company.

… and announced in May


In deciding to reinstate the dividend on the Capital Shares this quarter, the Board of Directors considered, among other things, the improved performance of the Company’s portfolio since the last quarter, the rights attaching to the Preferred Shares, including the priority of the Preferred Shares for the payment of cumulative dividends and return of capital prior to the rights of the Capital Shares, estimated expense levels and the anticipated distributions receivable on the Company’s portfolio. A consideration of these factors, among other matters, resulted in the determination of the Board to suspend Capital Share dividends in the prior quarter and the reinstatement of these dividends in the current quarter.

The Board of Directors will continue to monitor these factors, among others, when deciding on the declaration and payment of dividends in the future and these factors may cause the board to reduce, suspend or increase dividends on the Capital Shares in future periods.

Just trying to keep things up to date! NB Split’s portfolio is entirely comprised of NA common. Asset Coverage as of August 13 was 1.4+:1 according to the company.

NBF.PR.A is not tracked by HIMIPref™ since the issue size is too small. It was last mentioned on PrefBlog when it was downgraded to Pfd-4(low) by DBRS.

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