PrefBlog

M-Split Corp has announced:

M-Split Corp. (“the Company”) was created to provide
exposure to the common shares of Manulife Financial Corporation (“Manulife”) through two classes of securities, the Priority Equity Shares and the Class A Shares (a “Unit”). As stated in the prospectus, holders of the Priority Equity Shares are to be provided with a stable yield and downside protection on the return of their initial investment. Class A Shares are to be provided with leveraged exposure to Manulife common shares including both increases and decreases in the value of the common shares of Manulife and the benefit of any increases in the dividends paid by Manulife on its common shares.
…
during October, the share price of Manulife has declined by approximately 39% resulting in an overall total decrease in the share price of Manulife of 43% since the inception date of the Company. Manulife was $ $41.08 as at the inception date of the Company on April 18, 2007 and closed on October 28 at $23.49.
…
As at close on October 28, 2008, the portfolio has approximately $5.68 in cash and equivalent notional value (value at maturity) of Permitted Repayment Securities per unit. This leaves the Priority Equity Shareholder exposed to $ 4.32 per share ($10.00 par value – $5.68 in cash and equivalent notional value of Permitted Repayment Securities) in Manulife holdings. The net asset value as at October 28 was $10.24 per unit which includes $5.70 amount per unit in shares of Manulife.

The protection programme is similar to the one in place for XCM.PR.A, which is still in place.

XMF.PR.A has 4.7-million shares outstanding, according to the Toronto Stock Exchange. It is not tracked by HIMIPref™.

This entry was posted on Wednesday, October 29th, 2008 at 5:55 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.