PrefBlog

Top 10 Split Trust has announced:

that the Fund will effect a partial redemption of its preferred securities (“Preferred Securities”) in order to maintain an equal number of Preferred Securities and capital units (“Capital Units”) of the Fund outstanding. The partial redemption of Preferred Securities is being made in connection with the recent approval by holders of the Capital Units and the Preferred Securities (collectively, the “Securityholders”) of a proposal to extend the term of the Fund for an additional five-year term until March 31, 2016 and for automatic successive five-year terms thereafter.

Pursuant to the special retraction right granted to Securityholders in connection with the extension of the Fund, 284,227 Preferred Securities and 741,330 Capital Units were surrendered for retraction. In order to maintain an equal number of Preferred Securities and Capital Units, the Fund will redeem an aggregate of 457,103 Preferred Securities on a pro rata basis from all holders of record of Preferred Securities on March 31, 2011 (the “Repayment Date”), representing approximately 19.8% of the issued and outstanding Preferred Securities. Each Preferred Security that is redeemed pursuant to the partial redemption will be redeemed at a price equal to $12.50, being the principal amount per Preferred Security, plus all accrued and unpaid interest thereon (the “Repayment Price”). The Repayment Price will be paid to holders whose Preferred Securities are redeemed by the Fund within 10 business days following the Repayment Date.

I don’t know how I missed the reorg, but I did!

On February 15, the fund announced:

that the Board of Directors of Mulvihill Capital Management Inc. (“MCM”), the manager of the Fund, has approved a proposal, subject to securityholder approval, to extend the term of the Fund for five years beyond its scheduled termination date of March 31, 2011, and for successive five-year terms after March 31, 2016. If the extension is approved, holders of capital units (“Capital Units”) and preferred securities (“Preferred Securities”) of the Fund (“Securityholders”) will be given a special right to redeem their Capital Units or Preferred Securities at net asset value (“NAV”) per Capital Unit or at the repayment price per Preferred Security on March 31, 2011.
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The Fund is also proposing to: (i) provide a special redemption right to enable holders of Capital Units and Preferred Securities to retract their securities on March 31, 2011 on the same terms that would have applied had the Fund retracted or repaid all Capital Units and Preferred Securities in accordance with the existing terms of such securities; (ii) change the monthly retraction prices for the Capital Units such that monthly retraction prices are calculated by reference to market price in addition to NAV and to change the notice period and payment period for the exercise of such rights and the payment of the retraction amount relating thereto; and (iii) consolidate the Capital Units or redeem the Preferred Securities on a pro rata basis, as the case may be, in order to maintain the same number of Capital Units and Preferred Securities outstanding.

The meeting date was then changed to March 21. The reorg was approved:

Top 10 Split Trust (the “Fund”) is pleased to announce that holders of capital units (“Capital Units”) and holders of preferred securities (“Preferred Securities”) of the Fund (collectively, the “Securityholders”) have approved a proposal to extend the term of the Fund for five years beyond its scheduled termination date of March 31, 2011, and for automatic successive five-year terms after March 31, 2016.
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Holders of Preferred Securities have the opportunity to benefit from: (i) fixed quarterly cash interest payments equal to 6.25% per annum on the $12.50 principal amount of a Preferred Security and (ii) an attractive five-year term with automatic successive five-year term extensions after March 31, 2016.

NAV is 17.28 as of March 17 giving Asset Coverage of 1.4-:1. TXT.PR.A was last mentioned on PrefBlog when the rating of Pfd-4(high) was withdrawn by DBRS at the company’s request. TXT.PR.A is not tracked by HIMIPref™.

This entry was posted on Wednesday, March 23rd, 2011 at 10:35 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.