GT.PR.A Redemption Price Announced

Mulvihill has announced on behalf of Global Telecom Split Share Corp.:

that the redemption prices to be paid for all Preferred Shares and Class A Shares outstanding on the July 2, 2008 final redemption date are as follows:

  • Redemption Price per Preferred Share = $12.4838
  • Redemption Price per Class A Share = nil

In addition, the Company will pay holders of Preferred Shares all accrued and unpaid dividends to date amounting to $0.20625 per Preferred Share. The Company expects that the redemption price and unpaid dividend will be paid to holders of Preferred Shares on or about July 10, 2008.

GT.PR.A’s ratings woes were highlighted in an article I wrote about Split Shares; the fund’s preferreds serve as an object lesson that you can’t simply ignore the underlying security when purchasing a split-share pref with a high coverage ratio. The fund’s prospectus was dated June 18, 1998 … it did quite well … for a while.

Issue price of both the capital shares and preferred shares was $15.00, issued in equal amounts.

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