FIG.PR.A & FCS.PR.A – Capital Unit Distributions Halted

Faircourt Asset Management has announced:

that in accordance with the terms of Trust Indentures governing the Preferred Securities and the maintenance of a minimum 1.4 times asset coverage to be maintained by the Trusts, dated November 17, 2004 for Faircourt Income & Growth Split Trust and March 16, 2006 for Faircourt Split Trust, monthly distributions on the Trust Units (TSX: FIG.UN, FCS.UN) will be suspended until further notice, in order to protect the Trusts’ Net Asset Value and to preserve the Trusts’ ability to rebuild and meet their respective investment objectives in the long term.

This announcement does not affect the quarterly distributions related to the Preferred Securities of either Trust (TSX: FIG.PR.A, FCS.PR.A).

The potential for a buy-back or partial redemption of FIG.PR.A has been discussed on PrefBlog; it is currently a member of the HIMIPref™ InterestBearing subindex. FCS.PR.A had a partial redemption last year and another one this year.

Both issues are currently under Review-Negative by DBRS.

Update, 2008-10-29: Note that according to the June 30 Financials, there were 9,964,308 Preferred Securites and 7,061,762 Capital units, or about 0.71 Capital Units per Preferred … which is good to remember when computing asset coverage!

6 Responses to “FIG.PR.A & FCS.PR.A – Capital Unit Distributions Halted”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « FIG.PR.A & FCS.PR.A – Capital Unit Distributions Halted […]

  2. […] coverage of 1.3+:1 based on Capital Unit NAV of 4.88 and 0.71 Capital Units per Preferred. Now with a pre-tax bid-YTW of 10.75% based on a bid of 8.10 and a hardMaturity 2014-12-31 at […]

  3. […] coverage of 1.3+:1 based on Capital Units NAV of 4.56 on November 6 and 0.71 Capital Units per Preferred. Now with a pre-tax bid-YTW of 12.44% based on a bid of 7.50 and a hardMaturity 2014-12-31 at […]

  4. […] to capital unitholders were recently halted. FIG.PR.A is currently under Review-Negative by […]

  5. […] coverage of 1.3-:1 as of November 11, based on a Capital Unit NAV of 3.92 and 0.71 Capital Units per Preferred. Now with a pre-tax bid-YTW of 13.04% based on a bid of 7.31% and a hardMaturity 2014-12-31 at […]

  6. […] NAV of the Fund’s Capital Units was $3.07 as of November 17, and there were 0.71 Capital Units per Preferred. Successful completion of the entire offering – by no means a given – would imply asset coverage of […]

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