DFN.PR.A Term Extension Approved

Quadravest has announced:

that shareholders have voted over 99% in favor of management’s proposals at a shareholder meeting held earlier today. Management would like to sincerely thank shareholders and their advisors for this overwhelming level of support. Shareholders were asked to approve the extension of the termination date to December 1, 2019. This proposal was approved by 99.4% of the Class A Shareholders and 99.8% of the Preferred Shareholders.

Shareholders were also asked to consider a proposal that would allow the merger of the cash assets of two Funds (Capital Gains Income STREAMS Corporation and Income STREAMS Corporation) into the Company on December 1, 2013. This proposal was approved 99.2% by Class A Shareholders and 99.6% by Preferred Shareholders. This transaction is contingent upon further approvals from the shareholders of the other two terminating Funds and all other required regulatory approvals.

Dividend 15 has exceeded its distribution objectives since 2004 despite some periods of very challenging markets. Class A Shareholders and Preferred Shareholders have received 110 consecutive distributions totaling $14.50 and $4.83 respectively. The Class A shares trade on the TSX under the symbol DFN and recently closed at $11.24 with a current yield of 10.68%.

The Preferred shares trade under the symbol DFN.PR.A and recently closed at $10.39 with a current yield of 5.05%.

The terms of the reorganization have been reported on PrefBlog. Briefly:

  • Term extended to December 1, 2019.
  • Dividend unchanged (until 2019) at 0.525 p.a.
  • Special retraction at end of June (not crucial because the shares currently trade above par)
  • No special retraction or maturity on the scheduled date in 2014

DFN.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns. The HIMIPref™ security code has changed from A43061 to A43062

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