YCM.PR.A : Partial Call For Redemption

Quadravest has announced:

a pro-rata redemption of YCM.PR.A Class I Preferred Shares (“Class I Preferred Shares”) and a YCM Capital Share (“Capital Share”) consolidation in order to maintain an equal number of Capital Shares, Class I Preferred Shares and YCM.PR.B Class II Preferred Shares (“Class II Preferred Shares”) outstanding.

In connection with the termination date extension of the Company for a further five years to December 1, 2024, an additional retraction right was offered allowing existing shareholders to tender any or all classes of Shares and receive a retraction price based on the November 29, 2019 net asset value per unit, payable on or before December 16, 2019. There were more Class II Preferred Shares retracted than Capital Shares and Class I Preferred Shares. As a result, pursuant to the Company’s guidelines, the Company is required to redeem 719,390 Class I Preferred Shares.

The Class I Preferred Shares will be redeemed on a pro-rata basis, so that shareholders of record on the close of business on November 29, 2019 will have approximately 44.35% of their Class I Preferred Shares redeemed. The redemption price of $5.00 per Class I Preferred Share will be paid on or before December 16, 2019. Holders of Class I Preferred Shares that have been called for redemption will be entitled to receive the November dividend payable on December 10, 2019 for holders of record on November 29, 2019.

As a result of the reduction in Class I and Class II Preferred shares, Capital shareholders will have their Capital Shares consolidated at a ratio of 0.578956069 for each Capital Share outstanding. The consolidation will be a non-taxable event. The expected post-consolidation trade date for the Capital Shares will be announced at a later date.

The aggregate intrinsic value of the Capital shareholders’ holdings will remain the same as a result of the net asset value per Capital Share increasing on a proportionate basis for each post-consolidation share on the consolidation date.

As at the consolidation date, the resultant increase in the net asset value per Capital Share will have the impact of increasing the asset coverage ratios for the Class I Preferred Shares and Class II Preferred Shares.

The Company invests in common shares of Canadian Imperial Bank of Commerce, a Canadian financial institution.

YCM.PR.A had a large partial redemption in 2014; the issue arose from a complex reorganization of XCM.PR.A. The issue is not tracked by HIMIPref™, as the market capitalization of just over $8-million is about to be cut by nearly half.

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