Mulvihill has announced:
MCM Split Share Corp. (the “Company”) announced today that its Board of Directors has approved a proposal to extend the life of the Company for an additional 5 years to February 1, 2013.
The final redemption date for the Class A Shares and Preferred Shares of the Company is currently February 1, 2008 and the Company proposes to implement a reorganization (“Reorganization”) which will allow shareholders to retain their investment in the Company for up to an additional five years. As part of the Reorganization, the Preferred Shares will be renamed the “Priority Equity Shares” and the Company will adopt a portfolio protection plan for the benefit of the holders of such shares. The dividend entitlement of the shares will remain unchanged at 5.50% per annum (on the $15.00 original issue price).
Class A Shareholders will benefit from a unique, highly leveraged investment in a blue-chip portfolio, and will receive distributions initially set at approximately 10% per annum on the net asset value of the Class A Shares. The Company believes that the Reorganization will allow shareholders to maintain their investment in the Company for up to a further five years on a basis which will better enable it to meet its investment objectives for both classes of shares.
Holders of Class A Shares and Preferred Shares will retain their annual and monthly retraction rights originally provided to them. In addition, if the Reorganization is approved, shareholders will be given a special retraction right to cause the Company to redeem their Class A Shares and/or Preferred Shares at net asset value on January 31, 2008.
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A special meeting of holders of Class A Shares and Preferred Shares has been called and will be held on December 12, 2007 to consider and vote upon the proposal. Further details of the proposal will be outlined in an information circular to be prepared and delivered to holders of Class A Shares and Preferred Shares in connection with the special meeting. The Reorganization is also subject to all required regulatory approvals.
The shares are tracked by HIMIPref™ and are a constituent of the SplitShare Index. Asset coverage, which has been discussed before, is a pretty skimpy 1.5+:1 as of October 31, according to Mulvihill. DBRS hasn’t published a single word about the issue in over five years … they’re currently rated at Pfd-2, but according to me they’re Pfd-2(low) with a negative trend AT BEST and should probably be Pfd-3 or Pfd-3(high).
This entry was posted on Wednesday, November 7th, 2007 at 8:10 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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MUH.PR.A : Term Extension Proposal
Mulvihill has announced:
The shares are tracked by HIMIPref™ and are a constituent of the SplitShare Index. Asset coverage, which has been discussed before, is a pretty skimpy 1.5+:1 as of October 31, according to Mulvihill. DBRS hasn’t published a single word about the issue in over five years … they’re currently rated at Pfd-2, but according to me they’re Pfd-2(low) with a negative trend AT BEST and should probably be Pfd-3 or Pfd-3(high).
This entry was posted on Wednesday, November 7th, 2007 at 8:10 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.