Quadravest has announced:
TDb Split Corp. (the “Company”) is pleased to announce an increase in the Priority Equity Share dividend rate to 7.00% from 5.25% on the $10.00 repayment value for the new five-year term effective December 1, 2024. The Priority Equity Share monthly dividends will be $0.05833 per share or $0.70 per annum and the new distribution rate represents an increase of $0.18 per annum from the previous rate. Priority Equity shareholders have received a total of $8.96 per share in distributions since inception. The dividend policy for the Class A Shares will remain at the current targeted rate of $0.05 per month, or $0.60 per annum.
As previously announced on March 12, 2024, the Company will extend the termination date a further five year period from December 1, 2024 to December 1, 2029. In relation to the term extension and the Priority Equity Share rate increase, the Company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 29, 2024 net asset value per unit. Alternatively, shareholders may sell their shares for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.
The Company invests in common shares of Toronto-Dominion Bank, a leading Canadian Financial institution.
The term extension was previously reported on PrefBlog.
Thanks to Assiduous Reader niagara for bringing this to my attention!
I wonder how this will fare once the retraction deadline passes. Same div rate as DFN.PR.A, but only one stock (TD) and much less downside protection plus the NAV test is $12.50 as opposed to $15 on DFN.PR.A