SXT.PR.A Partial Call for Redemption

Sixty-Split Corp announced today :

that it has called 638,503 Preferred Shares for cash redemption on March 15, 2007 (in accordance with the Company’s Articles) representing approximately 41.578% of the outstanding Preferred Shares as a result of the special annual retraction of 1,277,422 Capital Shares by the holders thereof. The Preferred Shares shall be redeemed on a pro rata basis, so that each holder of Preferred Shares of record on March 14, 2007 will have approximately 41.578% of their Preferred Shares redeemed. The redemption price for the Preferred Shares will be $25.00 per share.
    Holders of Preferred Shares that are on record for the dividend but have been called for redemption will be entitled to receive dividends thereon which have been declared but remain unpaid up to but not including March 15, 2007.

I highlighted the possibility some time ago and warned again, but the price just stayed high. The issue closed today at 25.93-15, 10×3; dividends paid 3/15 will be $0.3563. So there’s a loss coming in two weeks of nearly $0.60 on nearly half the holdings. Ouch.

One Response to “SXT.PR.A Partial Call for Redemption”

  1. […] Makes at least some sense, since today is the first day of trading in post-redemption shares. I wonder if the sellers knew that? […]

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