Mulvihill has announced:
World Financial Split Corp. (the “Fund”) has declared its quarterly distribution of $0.13125 on each of its Preferred Shares payable September 30, 2009 to shareholders of record as of September 15, 2009. To the extent that any portion of the distributions are ordinary taxable dividends and not capital gains dividends, they will be eligible dividends. Distributions on its Class A shares continue to be suspended in accordance with the terms of the offering prospectus, which states “No distribution will be paid on the Class A shares if (i) the distributions payable on the Preferred shares are in arrears; or (ii) after the payment of the distribution by the Company, the NAV per unit would be less than $15.00.
Asset Coverage as of August 27 was 1.3+:1.
The Semi-Annual Report of 2009-6-30 makes no mention of the ballyhooed issuer bid, so we may assume that idea is inoperable, despite the significant discount of market price to NAV. Investors were not so shy, however: nearly 20% of the funds total liabilities (that is, including equity) are on the books as being “Redemptions Payable” on the June 30 statements. The number of units outstanding dropped to 9,091,210 on June 30 from 11,835,359 on Dec. 31, 2008.
Income coverage is horrible, with a mere $290,924 net investment income available to cover $1,143,513 in expenses and $3,012,518 in preferred share distributions.
WFS.PR.A was last mentioned on PrefBlog when it was upgraded to Pfd-4 by DBRS. WFS.PR.A is tracked by HIMIPref™ but has been relegated to the “Scraps” index on credit concerns.
[…] was last mentioned on PrefBlog with the reminder that the Capital Unit dividend was still suspended – it cannot be paid unless Asset Coverage of the preferreds is greater than 1.5:1. WFS.PR.A is […]