FCS.PR.B Retraction Results

Faircourt Asset Management has announced (although not yet on their website) that in its role as:

the Manager of Faircourt Split Trust (the “Trust”) (TSX: FCS.UN; FCS.PR.B), announced today that 53,892 Combined Units (consisting of one Trust Unit and one Preferred Security) and 899,037 Trust Units (without matching Preferred Securities) were submitted for redemption on May 31, 2013. Securityholders who tendered Combined Units for redemption will be entitled to receive $14.1890 per Combined Unit, which is equal to $4.1822, being the Net Asset Value per Trust Unit calculated using a three day volume weighted average price for exchange-traded securities held by the Trust, determined as of June 28, 2013 less costs of funding the redemption, including commissions, plus the $10.00 principal amount of the Preferred Security, plus all accrued and unpaid interest thereon to but excluding July 4, 2013 (the “Payment Date”). Securityholders who submitted unmatched Trust Units will receive $4.1822 per Trust Unit. Payment in respect of the redemptions of Combined Units and unmatched Trust Units will be made in full on the Payment Date.

As of December 31, 2012, there 3,253,623 Trust Units (FCS.UN) and 5,290,665 preferred shares (FCS.PR.B) outstanding. Assuming that there have been no intervening changes in these figures, the numbers are now 2,300,694 and 5,236,773, respectively.

Given that the June 26 NAV was $4.20 for FCS.UN and $10.00 for FCS.PR.B, this implies that the Asset Coverage Ratio is a pretty awful 1.2-:1. Faircourt has in the past occasionally reacted to low Asset Coverage by redeeming Preferred Shares, but there is no guarantee that will happen again.

FCS.PR.B was last mentioned on PrefBlog when DBRS confirmed it at Pfd-3(low) in September 2012 when the Asset Coverage ratio was 1.4-:1.

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