RBS.PR.A : Tiny, Tiny Call for Redemption

R Split III Corp, which recently had its rating confirmed at Pfd-2(low) by DBRS, has announced:

that it has called 2,032 Preferred Shares for cash redemption on May 30, 2008 (in accordance with the Company’s Articles) representing approximately 0.090% of the outstanding Preferred Shares as a result of the special annual retraction of 16,444 Capital Shares by the holders thereof. The Preferred Shares shall be redeemed on a pro rata basis, so that each holder of Preferred Shares of record on May 29, 2008 will have approximately 0.090% of their Preferred Shares redeemed. The redemption price for the Preferred Shares will be $29.22 per share.

Holders of Preferred Shares that are on record for dividends but have been called for redemption will be entitled to receive dividends thereon which have been declared but remain unpaid up to but not including May 30, 2008.

Payment of the amount due to holders of Preferred Shares will be made by the Company on May 30, 2008. From and after May 30, 2008 the holders of Preferred Shares that have been called for redemption will not be entitled to dividends or to exercise any rights in respect of such shares except to receive the amount due on redemption.

0.09%? So if you own 10,000 shares, 9 of them will be called? It’s certainly not the company’s fault, but this is more of a nuisance than anything else!

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