{"id":40346,"date":"2020-03-02T22:50:17","date_gmt":"2020-03-03T03:50:17","guid":{"rendered":"http:\/\/prefblog.com\/?p=40346"},"modified":"2020-03-02T22:50:17","modified_gmt":"2020-03-03T03:50:17","slug":"osp-pr-a-suffers-75-preferred-share-retraction","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40346","title":{"rendered":"OSP.PR.A Suffers 75%+ Preferred Share Retraction"},"content":{"rendered":"<p>Brompton Group <a href=\"http:\/\/www.bromptongroup.com\/wp-content\/uploads\/2020\/03\/OSP-Pro-Rata-Redemption.pdf\">has announced<\/a>:<\/p>\n<blockquote><p>Brompton Oil  Split Corp. (the \u201cFund\u201d) announces a pro-rata redemption of class A shares will be required (the \u201cClass A Shares\u201d) to maintain an equal number of preferred shares (the \u201cPreferred Shares\u201d) and Class A Shares outstanding.  In connection with the extension of the Fund\u2019s term for an additional three years, holders of both Class A Shares and Preferred Shares had a special retraction right.   Preferred shareholders retracted 2,416,132 more shares than Class A shareholders.  As a result, unless Preferred Shares are withdrawn from the retraction, the Fund will be required to redeem 2,416,132 Class A Shares on a pro-rata basis pursuant to the Fund\u2019s constating documents which is a reduction of approximately 75.269% of each Class A shareholders\u2019 holdings.  Each Class A shareholder of record on March 31, 2020 will receive a redemption price equal to the greater of: (i) the net asset value per unit (each unit consisting of 1 Class A Share and 1 Preferred Share) minus the sum of $10.00 plus any accrued and unpaid distributions on a Preferred Share, and (ii) nil.   The redemption payment will be made on or before April 15, 2020.<\/p>\n<p>The Fund invests in a portfolio of equity securities of large capitalization North American oil and gas issuers, primarily focused on those with significant exposure to oil.<\/p><\/blockquote>\n<p>Extension details were <a href=\"http:\/\/prefblog.com\/?p=40193\">announced in January<\/a> following the <a href=\"http:\/\/prefblog.com\/?p=38296\">March, 2019, notice of extension<\/a>. In the former post, I strongly recommended retraction of the preferreds<\/a>. As of 2020-2-28, the fund had only <a href=\"https:\/\/www.bromptongroup.com\/products\/preferred-shares\/\">$8.38 in assets for every $10.00 of preferred share obligations<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brompton Group has announced: Brompton Oil Split Corp. (the \u201cFund\u201d) announces a pro-rata redemption of class A shares will be required (the \u201cClass A Shares\u201d) to maintain an equal number of preferred shares (the \u201cPreferred &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-40346","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40346"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40346\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}