OSP.PR.A To Be Extended

Brompton Group has announced:

Brompton Oil Split Corp. (the “Fund”) is pleased to announce that the board of directors has approved an extension of the maturity date of the Class A and Preferred shares of the Fund. The current maturity date of March 30, 2023 will be extended for an additional period of one to three years. The new term and the proposed rate for the preferred share dividend for the new term will be announced at least 60 days prior to the current March 30, 2023 maturity date. The preferred share dividend rate for the extended term will be based on market yields for preferred shares with similar terms at that time. The extension of the term of the Fund is not expected to be a taxable event.

The Fund invests in a portfolio of equity securities of large capitalization North American oil and gas issuers, primarily focused on those with significant exposure to oil.

OSP.PR.A is the preferred part of a Split Share Corporation that commenced trading 2015-2-24 after being announced 2015-2-9. It ran into problems in 2019 but announced an extension anyway. Problems worsened by late 2019 and by the time extension details were published the fund’s NAVPU only just covered the preferred share obligation. The fund then suffered a 75% retraction of preferred shares. The fund’s NAVPU is now 12.78 amidst an uncertain future for oil prices, so we could well see further excitement at the next retraction date.

Thanks to Assiduous Reader RAV4guy for bringing this to my attention!

2 Responses to “OSP.PR.A To Be Extended”

  1. RAV4guy says:

    Brompton Oil Split Corp. Announces Extension of Term and Preferred Share Distribution Rate


    Brompton is offering 8% dividend rate for this possible new 1 year term for OSP.PR.A. Will it stop the current owners retracting?

  2. […] to Assiduous Reader RAV4guy for bringing this to my attention. As he suggests, the crucial question is “Will it stop the current owners retracting?”, […]

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