FTN.PR.A : Meeting to extend term?

Financial 15 Split Corp. is in the happy position of having increased its preferred shares outstanding since issue:

Financial 15 Preferreds Outstanding
Period Action Shares
2003-11-14 Issue 10,600,000
FY 2004 Issue 300,000
FY 2006 Redemption (190,762)
Current Outstanding   10,709,238

The shares are not redeemable by the company (the “Redemption” in the table above is actually Shareholder Retraction, but I’m following the language of the Annual Report): capital unitholders who wish to retract must tender a pref, or get the company to buy one in the market on their behalf.

The company has announced that:

they will hold a special meeting of the shareholders on April 24, 2007. Shareholders of each Fund are being asked to consider a special resolution to amend the articles of Fund to extend the mandatory redemption date for the Class A Shares and the Preferred Shares of each Corp. to December 1, 2014.

This will be a good deal if the 5.25% dividend isn’t decreased simultaneously! I’ll write more as details become available.

One Response to “FTN.PR.A : Meeting to extend term?”

  1. […] As previously noted, FTN.PR.A shareholders will be meeting April 24 to vote on extending term. […]

Leave a Reply

You must be logged in to post a comment.