PrefBlog

Further to the previously noted proposal Energy Split II Corporation has announced:

that holders of its Capital Yield Shares and holders of its ROC Preferred Shares have approved amendments to the articles of the Company extending the termination date of the Company for an additional three years to December 16, 2010.
…
Holders of ROC Preferred Shares will be able to continue to enjoy quarterly fixed cumulative preferential tax efficient distributions on the ROC Preferred Shares for an additional three years at an increased rate equal to the greater of (i) 5.00% and (ii) the Government of Canada three year bond rate as at November 9, 2007 plus 0.75%, rounded down to the nearest 0.05%. The Company will announce the actual rate on the ROC Preferred Share on November 9, 2007.
…
The reorganization will only be implemented if a minimum of 1,280,000 Capital Yield Shares remain issued and outstanding following exercise of the Special Retraction Right by holders on or before November 16, 2007. If this condition is not satisfied, the Company will redeem the Capital Yield Shares and the ROC Preferred Shares on December 16, 2007 as originally contemplated.

If the reorganization is implemented the ratio of Capital Yield Shares to ROC Preferred Shares will continue to be two-to-one and the asset coverage on the ROC Preferred Shares will be set at approximately 2.2 times to extend the current Pfd-2(low) rating. In order to achieve this, the Company may redeem ROC Preferred Shares which are not surrendered for retraction pursuant to the Special Retraction Right. The reorganization is not conditional on the rating being maintained.

EN.PR.A is tracked by HIMIPref™, but is not included in any of the indices due to low average volume. There are a mere 1,209,398 shares outstanding, according to the Toronto Stock Exchange.

HIMIPref™ and PrefInfo information will not be updated until it is known whether the reorganization has been effected. This should be announced on or just after November 16.

This entry was posted on Tuesday, October 23rd, 2007 at 6:42 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.