{"id":40605,"date":"2020-03-25T02:06:11","date_gmt":"2020-03-25T07:06:11","guid":{"rendered":"http:\/\/prefblog.com\/?p=40605"},"modified":"2020-03-25T02:06:11","modified_gmt":"2020-03-25T07:06:11","slug":"osp-pr-a-70-of-capital-units-to-disappear","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40605","title":{"rendered":"OSP.PR.A : 70% of Capital Units to Disappear?"},"content":{"rendered":"<p>Brompton Group <a href=\"http:\/\/www.bromptongroup.com\/wp-content\/uploads\/2020\/03\/OSP-Pro-Rata-Redemption-Update.pdf\">has announced<\/a>:<\/p>\n<blockquote><p> Brompton Oil Split Corp. (the \u201cFund\u201d) previously announced a pro-rata redemption of class A shares (the \u201cClass A Shares\u201d) in order to maintain an equal number of preferred shares (the \u201cPreferred Shares\u201d) and Class A Shares outstanding as a result of more Preferred Shares being tendered to the special non-concurrent retraction in connection with the extension of the Fund\u2019s term for an additional three years. As a result of withdrawals from the Preferred Share retraction, the Fund will now be required to redeem 2,259,102 Class A Shares on a pro-rata basis pursuant to the Fund\u2019s constating documents which is a reduction of approximately 70.377% 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, if any, 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>Given that the NAVPU of the preferred shares as of March 23 is <a href=\"https:\/\/www.bromptongroup.com\/products\/preferred-shares\/\">only 3.67<\/a> (and the <a href=\"https:\/\/www.bromptongroup.com\/products\/split-share-class-a-share-investments\/\">Capital Unit NAV<\/a> is zero, of course), it currently appears that the redemption price calculated on March 31 will be nil.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brompton Group has announced: Brompton Oil Split Corp. (the \u201cFund\u201d) previously announced a pro-rata redemption of class A shares (the \u201cClass A Shares\u201d) in order 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-40605","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40605","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=40605"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40605\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}