PREMIUM INCOME CORPORATION ANNOUNCES SHAREHOLDER APPROVAL OF PROPOSAL TO EXTEND REDEMPTION DATE
29 Setembro 2010 - 11:35AM
PR Newswire (Canada)
TORONTO, Sept. 29 /CNW/ -- TORONTO, Sept. 29 /CNW/ - (TSX: PIC.A;
PIC.PR.A) - Premium Income Corporation (the "Fund") is pleased to
announce that its shareholders have approved a reorganization
("Reorganization") to extend the term of the Fund for an additional
seven years. In connection with the Reorganization, holders of
Class A Shares will continue to receive ongoing leveraged exposure
to a high-quality portfolio consisting principally of common shares
of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial
Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion
Bank, as well as attractive quarterly cash distributions.
Currently, the Fund is paying quarterly Class A distributions at a
rate of $0.60 per year. The Fund intends to continue to pay
distributions at this rate until the net asset value ("NAV") per
Unit (a "Unit" being considered to consist of one Class A Share and
one Preferred Share) reaches $22.50. At such time, quarterly Class
A distributions paid by the Fund will vary and will be calculated
as approximately 8.0% per annum of the NAV of a Class A Share.
Holders of Preferred Shares are expected to continue to benefit
from fixed cumulative preferential quarterly cash dividends in the
amount of $0.215625 per Preferred Share ($0.8625 per year)
representing a yield of 5.75% per annum on the original issue price
of $15.00. As part of the Reorganization, the Fund will also make
other changes including changing its authorized share capital by
adding new classes of shares issuable in series, changing the
monthly retraction prices for the Class A Shares and the Preferred
Shares so that they are calculated by reference to market price in
addition to NAV and changing the dates by which notice of monthly
retractions needs to be provided and by which the retraction amount
will be paid. The Fund will also allow for the calculation of a
diluted NAV in the event the Fund should ever issue warrants or
rights to acquire additional Class A Shares or Preferred Shares.
The Fund believes that the Reorganization will allow shareholders
to maintain their investment in the Fund on a basis that will
better enable it to meet its investment objectives for both classes
of shares. Shareholders will be given a special retraction right to
retract their Class A Shares or Preferred Shares at NAV on November
1, 2010. The redemption date of the shares will automatically be
extended for successive seven-year terms after November 1, 2017,
the Board of Directors will be authorized to set the dividend rate
on the Preferred Shares for any such extension of term and
shareholders will be able to retract their Class A Shares or
Preferred Shares at NAV prior to any such extension. For further
information, please contact Investor Relations at 416.681.3966,
toll free at 1.800.725.7172 or visit www.mulvihill.com John
Mulvihill, President and CEODavid Roode, President, Fund Services A
member of the Mulvihill Capital Management Inc. Group of Funds
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Please read the
prospectus before investing. Mutual funds are not guaranteed, their
values change frequently and past performance may not be repeated.
p align="left"bMulvihill Structured Products/b/p p align="left"121
King Street Westbr/Suite 2600br/Toronto, Ontario, M5H
3T9br/416.681.3966; 1.800.725.7172br/a
href="http://www.mulvihill.com"www.mulvihill.combr//aa
href="mailto:info@mulvihill.com"info@mulvihill.com/a/p
Copyright
Premium Income (TSX:PIC.A)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Premium Income (TSX:PIC.A)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
Notícias em tempo-real sobre Premium Income Corporation da Toronto Stock Exchange bolsa de valores: 0 artigos recentes
Mais Notícias de Premium Income