PrefBlog

BlackRock Asset Management Canada Limited has announced (although not yet on their website):

details concerning the delisting and mandatory redemption of the Class A Capital Shares (the “Capital Shares”) and Class A Preferred Shares (“Preferred Shares”) of the Corporation on December 30, 2016 (the “Redemption Date”). The Capital Shares and Preferred Shares are currently listed on the Toronto Stock Exchange (the “TSX”) under the symbols” “BBO” and “BBO.PR.A”, respectively.

As disclosed in the Corporation’s disclosure documents, pursuant to the Corporation’s Articles of Incorporation, as amended, the Capital Shares and Preferred Shares will be automatically redeemed on the Redemption Date. The redemption price payable by the Corporation for a Capital Share on the Redemption Date will be equal to the greater of: (i) the net asset value per Unit (a “Unit” consists of one Preferred Share and one Capital Share) on that date minus $10.00 and any accrued and unpaid distributions on a Preferred Share; and (ii) nil. Any monthly distribution declared on the Capital Shares for December 2016 will be paid with the redemption proceeds for the Capital Shares. The redemption price payable by the Corporation for a Preferred Share on the Redemption Date will be equal to the lesser of: (i) $10.00 plus any accrued and unpaid distributions thereon; and (ii) the net asset value of the Corporation on that date divided by the total number of Preferred Shares then outstanding. The quarterly distribution expected to be declared on the Preferred Shares for December 2016 will be paid with the redemption proceeds for the Preferred Shares.

In connection with the redemption, BlackRock Canada expects that the Capital Shares and Preferred Shares will cease trading on the TSX and be delisted from the TSX on or about December 23, 2016. It is expected that, as soon as practicable following the Redemption Date, the affairs of the Corporation will be wound up and the Corporation will be dissolved. To facilitate a timely and orderly redemption, the Corporation may liquidate certain assets in order to move to a larger cash position as the Redemption Date approaches.

For more information, investors should consult with their investment advisor or visit our website at www.blackrock.com/ca.

BBO.PR.A has received some coverage on PrefBlog, but has not been tracked by HIMIPref™.

Update, 2017-1-6: Done.

This entry was posted on Wednesday, October 19th, 2016 at 1:03 am 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.