PrefBlog

Timbercreek Asset Management Inc. has announced:

TD Split Inc. (the “Company”) announced today that, in accordance with the expiration of the term and as set out in the short form prospectus of the Company dated October 26, 2010 (the “Prospectus”), the Company will redeem all outstanding Class C Preferred Shares and Class C Capital Shares (collectively, the “Shares”) on November 15, 2015 (the “Redemption Date”) as scheduled and in accordance with their share provisions.

Prior to the Redemption Date, Timbercreek Asset Management Ltd. will sell the Company’s portfolio of TD Bank common shares to fund the redemptions. On the Redemption Date, in accordance with the share provisions for the Shares, holders of Class C Preferred Shares shall be entitled to receive a redemption price per share equal to the lesser of $10.00 and the Company’s unit value. Holders of Class C Capital Shares shall be entitled to receive a redemption price per share equal to the amount by which the unit value exceeds $10.00, or provided the holder tenders a cash amount of $10.00 for each Class C Capital Share to be redeemed at least 20 business days prior to the Redemption Date, TD Bank common shares represented by such holder’s pro rata share of the Company’s portfolio of TD Bank common shares plus (or minus) the pro rata share of the amount by which the value of the other assets of the Company exceed (or are less than) the liabilities of the Company as at the Redemption Date and the redemption value at the Class E Shares.

The Company was established to generate dividend income for the Class C Preferred Shares while providing holders of the Class C Capital Shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of The Toronto-Dominion Bank. In that respect, as of August 15, 2015, the Class C Preferred Shares, since their issuance in 2010, have generated a consistent 4.75% annual yield, with no change to the par value, while the Class C Capital Shares have delivered a net capital appreciation of 11.43% annualized, which compares to the underlying TD bank stock appreciation of 7.5%.

Information concerning TD Split Inc. is available on our website at http://www.timbercreek.com/td-split-inc.

TDS.PR.C was last mentioned on PrefBlog when it was confirmed at Pfd-2 by DBRS. The issue came to market five years ago with the refunding of TDS.PR.B.

Update, 2015-11-03: Final figures have been announced:

TD Split Inc. (TSX:TDS.C)(TSX:TDS.PR.C) (the “Company”) announced today that in connection with the previously announced upcoming maturity of the fund on November 15, 2015, 968,770 Class C Preferred Shares and 799,390 Class C Capital Shares have been tendered for redemption on November 13, 2015. The redemption price paid for the Class C Preferred Shares will be $10.00 per Class C Preferred Share, and the redemption price for the Class C Capital Shares will be $28.7964 per Class C Capital Share.

In addition, holders of Class C Capital Shares tendered 169,380 Class C Capital Shares (representing approximately 17.48% of the outstanding Class C Capital Shares), together with a cash amount of $10.00 per Class C Capital Share tendered (together, a “TD Split Unit”), in exchange for the holder’s pro rata share of the Company’s shares of TD Bank, resulting in payment of 0.7165 TD Bank Shares per TD Split Unit.

Payments of cash and delivery of the underlying portfolio shares owing to shareholders as a result of the final redemptions will be made by the Company on November 13, 2015.

This entry was posted on Tuesday, September 15th, 2015 at 11:06 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.