BDS.PR.A: Exchange Proposed, Not Redemption

Brompton Group has announced:

BG Income + Growth Split Trust (the “Trust”) announces that the special unitholder meeting previously described in the press release on April 18, 2008 has been advanced to June 9, 2008 to coincide with the meeting date for all other funds contemplated in the fund reorganization. In addition, the preferred securities will not be called in June 2008 as previously announced, but rather holders of the preferred securities will be asked at a meeting of such holders to be held on June 9, 2008 to authorize the exchange of the preferred security into an equivalent security with the same terms in the continuing fund. By exchanging the preferred securities of the Trust into preferred securities of the continuing fund having the same maturity date, coupon and other terms, holders thereof will obtain greater asset coverage as the continuing fund will comprise assets of up to seven funds managed by Brompton. In addition, holders of preferred securities who do not wish to exchange will be given the opportunity to redeem their preferred securities and receive $10.00 therefor.

The previous plan anticipated a forced redemption.

One Response to “BDS.PR.A: Exchange Proposed, Not Redemption”

  1. […] According to the website, VIP.PR.A will come with the same terms as BDS.PR.A, although the Information Circular does not appear to make this clear. The original intent had been to redeem BDS.PR.A, but these plans were changed in April. […]

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