PrefBlog

Allbanc Split Corp has announced:

that holders of its Class A Capital Shares have approved a share capital reorganization allowing holders of Class A Capital Shares, at their option, to retain their investment in the Company after the scheduled redemption date of March 10, 2008. The reorganization will permit holders of Class A Capital Shares to extend their investment in the Company beyond the redemption date of March 10, 2008 for up to an additional 5 years. The Class A Preferred Shares will be redeemed on the same terms originally contemplated in their share provisions and have been called for redemption on March 10, 2008.

Holders of Class A Capital Shares who do not wish to continue their investment in the Company after March 10, 2008 must give notice that they wish to exercise their special retraction right and how they wish to be paid for their shares on or prior to February 15, 2008. Holders of Class A Capital Shares who retract their Class A Capital Shares will be paid on March 10, 2008.

The reorganization will involve the extension of the originally scheduled redemption date, a special retraction right to enable holders of Class A Capital Shares to retract their shares as originally contemplated should they not wish to extend their investment and the creation of a new class of shares to be known as the Class B Preferred Shares in order to provide continuing leverage for the Class A Capital Shares. The reorganization will become effective provided that holders of at least 180,000 Class A Capital Shares (before giving effect to the stock split) retain their Class A Capital Shares and do not exercise the special retraction right.

I see no indication as yet regarding the terms of the “Class B Preferred Shares”.

The redemption of ABK.PR.C has previously been announced.

Update, 2008-2-19: The company has announced:

today that the final condition required to extend the term of the Company for an additional five years to March 8, 2013, has been met. Holders of Class A Capital Shares previously approved the extension of the term of the Company subject to the condition that at least 180,000 Class A Capital Shares remain outstanding after giving effect to the special retraction right (the “Special Retraction Right”). Under the Special Retraction Right, 66,684 Class A Capital Shares have been tendered to the Company for retraction on March 10, 2008. Holders of these shares will receive a retraction price equal to the amount if any, by which the Unit Value exceeds $60.80. Holders of the remaining 332,342 Class A Capital Shares (representing 83.3% of the currently issued and outstanding Class A Capital Shares) will continue to hold their investment in the Company. After giving effect to the four-for-one share subdivision, it is expected that 1,329,368 Class A Capital Shares will remain outstanding. The Class A Preferred Shares will be redeemed by the Company on March 10, 2008 in accordance with their terms at a price per share equal to the lesser of $60.80 and the Unit Value. In order to maintain the leveraged “split share” structure of the Company, the Company will offer new Class B Preferred Shares pursuant to a preliminary prospectus dated January 30, 2008.

The preliminary prospectus has been published on SEDAR, but all of the interesting parts have been left blank.

This entry was posted on Friday, January 25th, 2008 at 6:48 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.