SBC.PR.A Term Extension Approved

Brompton Split Banc Corp. has announced:

At a special meeting of preferred and class A shareholders (“Shareholders”) of Brompton Split Banc Corp. (“SBC”) held today, Shareholders approved a special resolution to extend the term of SBC for up to 5 years beyond the scheduled termination date of November 30, 2012 and thereafter for successive terms of up to 5 years as determined by the SBC board of directors. The extension allows Shareholders to continue to enjoy the benefit of SBC’s portfolio of common shares of six Canadian banks (Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank). Canadian banks have stood out amongst their global peers as examples of stability over the long term and through the credit crisis and continue to maintain attractive dividend yields and return on equity. Shareholders will continue to have monthly and annual retraction rights except that the annual retraction date will be advanced forward from the second last business day of December to the second last business day of November commencing in 2013.

In addition to the daily liquidity provided by the TSX listings, shareholders who do not wish to continue their investment may redeem either their preferred shares or class A shares on November 30, 2012 and each extension of the term thereafter on the same terms that currently exist. SBC will announce the term of the initial extension by news release no later than October 1, 2012. Further details are available in the management information circular dated March 1, 2012.

PrefBlog previously reported the proposal to extend term.

SBC.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on both credit and volume concerns.

2 Responses to “SBC.PR.A Term Extension Approved”

  1. […] was last mentioned on PrefBlog when a term extension of up to five years was approved last […]

  2. […] favourable vote for the extension was reported on PrefBlog. SBC.PR.A was last mentioned on PrefBlog in connection with its semi-annual report for 12H1. The […]

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