FTN.PR.A : Term Extension Denied

Well! It looks like the capital unit-holders of Financial 15 Split Corp. have balked at the proposed term extension of the fund, not wishing to finance their margin at the rate of 5.25% in dividends:

Preferred Shareholders as a class voted 98.9 % in favour of the resolution, however the vote from Class A shareholders did not exceed the minimum required 66 2/3% of the votes cast in favour, and therefore the resolution was not approved at the meeting held earlier today.

Management will continue to consider if any further appropriate action should be taken on this matter.

This is interesting … I suspect that we haven’t seen the last of this issue … but as things stand now, the FTN.PR.A continue to have a redemption date of December 1, 2008.

3 Responses to “FTN.PR.A : Term Extension Denied”

  1. […] The hoped-for term extension was denied. Now with a pre-tax bid-YTW of 3.15% based on a bid of 10.35 and a hardMaturity 2008-12-01 at 10.00 […]

  2. […] More fallout from the denial of term extension? Now with a pre-tax bid-YTW of 3.86% based on a bid of 10.24 and a hardMaturity. […]

  3. […] Assiduous Reader cowboylutrell reminds me that this is a second attempt to extend term. The prior attempt was denied in April 2007 while term extensions for FFN.PR.A and DFN.PR.A were […]

Leave a Reply

You must be logged in to post a comment.