PrefBlog

Scotia Managed Companies has announced:

The Board of Directors of Energy Split Corp. Inc. (the “Company”) today declared a return of capital distribution of $0.23625 per Class B Preferred Share payable on September 16, 2011 to holders of record at the close of business on September 15, 2011.
In addition, the Board of Directors of the Company has declared a capital gains distribution of $0.1700 per Capital Yield Share, payable on September 16, 2011 to holders of record at the close of business on September 15, 2011.

Holders of Class B Preferred Shares are entitled to receive quarterly fixed cumulative distributions equal to $0.23625 per Preferred Share. The Capital Yield Shareholders are provided with a leveraged play on the yield and price performance from a fixed portfolio consisting of 15 oil and gas royalty trusts listed on the Toronto Stock Exchange. The Company’s Capital Yield Share distribution policy is to pay a quarterly distribution on the Capital Yield Shares equal to the excess of the distributions received on the royalty trust portfolio minus the Class B Preferred Share distributions and all administrative and operating expenses provided the net asset value per Unit at the time of declaration, after giving effect to the distribution, would be greater than the original issue price of the Class B Preferred Shares.

The Capital Yield Shares and Class B Preferred Shares will be redeemed by the Company on September 16, 2011 in accordance with the redemption provisions as detailed in the prospectus dated September 7, 2006. Pursuant to these provisions, the Class B Preferred Shares will be redeemed at a price per share equal to the lesser of $21.00 and the Net Asset Value per Unit. The Capital Yield Shares will be redeemed at a price equal to the amount by which the Net Asset Value per Unit exceeds $21.00. The Net Asset Value per Unit was $37.74 as at August 30, 2011.

A further press release will be issued by the Company in connection with the redemption prices on September 15, 2011. Payment of the amounts due to holders of Capital Yield Shares and Class B Preferred Shares will be made by the Company on September 16, 2011.

Capital Yield Shares and Class B Preferred Shares of Energy Split Corp. Inc. are listed for trading on The Toronto Stock Exchange under the symbols ES and ES.PR.B respectively.

ES.PR.B was last mentioned on PrefBlog when it was upgraded to Pfd-3 by DBRS in April. ES.PR.B is not tracked by HIMIPref™.

Update 2011-9-15: Redemption Prices:

Redemption Price per Class B Preferred Share: $21.00
Redemption Price per Capital Yield Share: $15.19

This entry was posted on Wednesday, August 31st, 2011 at 9:52 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.