ABK.PR.B: Warrants Issued to Capital Unitholders

Allbanc Split Corp. has announced:

that the Company has issued one warrant for each Capital Share held by holders of Capital Shares of the Company of record as at the close of business on October 1, 2010.

Each warrant will entitle the holder to purchase one Unit, each Unit consisting of one Capital Share and one Preferred Share, for a subscription price of $62.78 per Unit. Commencing October 4, 2010, warrants may be exercised at any time on or before 5:00 p.m. (Toronto time) on June 6, 2011. The warrants are listed on the Toronto Stock Exchange under the ticker symbol ABK.WT.

Holders of Preferred Shares are entitled to receive quarterly fixed cumulative distributions equal to $0.3344 per Preferred Share. The Company’s Capital Share dividend policy is to pay a quarterly dividend on the Capital Shares equal to the dividends received on the underlying portfolio securities minus the dividends payable on the Preferred Shares and all administrative and operating expenses provided the net asset value per Unit at the time of declaration, after giving effect to the dividend, would be greater than the original issue price of the Preferred Shares.

ABK.PR.B was last mentioned on PrefBlog when there was a partial call for redemption in February 2010. ABK.PR.B is not tracked by HIMIPref™.

One Response to “ABK.PR.B: Warrants Issued to Capital Unitholders”

  1. […] The NAV as of May 12 was 66.86, sufficient for Asset Coverage of 2.5-:1, and making the warrants significantly in-the-money. The warrants issue was reported on PrefBlog. […]

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