FTU.PR.A: Preferred Dividend Suspended

US Financial 15 Split Corp. has announced:

that it has suspended its regular monthly dividends effectively immediately for Priority Equity (“Preferred”) shareholders in order to preserve cash and to assist in rebuilding the net asset value in an attempt to meet longer term objectives. Since the Preferred shares are cumulative, this suspended dividend (and all subsequent dividends not paid) will be accrued to the benefit of the Preferred shareholders and recorded as a liability in the Company’s net asset value. Also, there will not be a distribution paid to Class A Shares for February 27, 2009 as per the Prospectus which states no regular monthly dividends or other distributions will be paid on the Class A Shares in any month as long as the net asset value per unit is equal to or less than $15.00. The net asset value as of February 13, 2009 was $4.17 and has been adversely impacted by the significant declines in the US financial services companies held in the portfolio.

FTU.PR.A was last mentioned on PrefBlog in October when DBRS ceased coverage at the request of Quadra. Quadra has also suspended dividends on XMF.PR.A and XCM.PR.A, with considerably less provocation.

FTU.PR.A is tracked by HIMIPref™. It was moved from the SplitShares subIndex to “Scraps” in April 2008 on credit concerns.

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