Premium Income Corporation Files Final Prospectus for Rights Offering
05 Novembro 2012 - 1:33PM
Marketwired
Premium Income Corporation (TSX:PIC.A)(TSX:PIC.PR.A) (the "Fund")
is pleased to announce that it has filed a final short form
prospectus relating to an offering of rights ("Rights") to holders
("Shareholders") of its class A shares ("Class A Shares") and
preferred shares ("Preferred Shares"). Each Shareholder of record
on November 13, 2012 will receive one Right for each Class A Share
or Preferred Share held.
Two Rights will entitle the holder to acquire one Class A Share
and one Preferred Share upon payment of the subscription price of
$20.88. The Toronto Stock Exchange has conditionally approved the
listing of the Rights under the symbol PIC.RT and the Class A
Shares and the Preferred Shares issuable upon the exercise thereof.
It is expected that the Rights will commence trading on November 9,
2012 and will remain trading until noon (EST) on the expiry date of
December 11, 2012.
The Fund invests in a portfolio consisting principally of common
shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial
Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion
Bank (the "Banks"). To generate additional returns above the
dividend income earned on the Fund's portfolio, the Fund may from
time to time write covered call options in respect of some or all
of the common shares in the Fund's portfolio. The Fund may also,
from time to time, write cash-covered put options in respect of
securities in which the Fund is permitted to invest. The manager
and investment manager of the Fund is Strathbridge Asset Management
Inc.
The exercise of Rights by holders will provide the Fund with
additional capital that can be used to take advantage of attractive
investment opportunities in the Banks and is also expected to
increase the trading liquidity of the Class A Shares and the
Preferred Shares and to reduce the management expense ratio of the
Fund. The Manager believes that current markets offer an excellent
opportunity for Shareholders to increase their exposure to the Fund
and its portfolio of the Banks. For the 4th consecutive year,
Canadian banks were ranked #1 by the Geneva based World Economic
Forum in the "Soundness of Banks" category. All 5 banks raised
their dividend in the third quarter by 3-7%. Several banks also
announced normal course issuer bids to repurchase shares.
Consequently, the Fund believes this is an opportune time to
issue Rights to all Shareholders of the Fund to allow Shareholders
to acquire additional Shares of the Fund.
For further information, please contact Investor Relations at
416.681.3966, toll free at 1.800.725.7172 or visit
www.strathbridge.com.
Contacts: Strathbridge Asset Management Inc. David Roode
President, Fund Services 416.681.3966 or 1.800.725.7172
Strathbridge Asset Management Inc. 121 King Street West, Suite 2600
Toronto, Ontario, M5H 3T9 416.681.3966 or
1.800.725.7172info@strathbridge.com www.strathbridge.com
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