Canadian Banc Recovery Corp. Class A Share Rebalancing
12 Janeiro 2012 - 7:50PM
Marketwired
Canadian Banc Recovery Corp. ("Canadian Banc") announces a Class A
share subdivision for all Class A shareholders of record on January
17, 2012 that will increase the number of shares held by each
shareholder. The purpose of the share subdivision is to maintain an
equal number of Class A shares and Preferred shares
outstanding.
As a result of the successful vote to extend the termination
date of Canadian Banc to December 1, 2018 at the recent Special
Meeting of Shareholders held on November 3, 2011, both Class A
shareholders and Preferred shareholders were given a special
retraction right. This special retraction right allowed both
classes of shareholders to tender one or both classes of shares and
receive a retraction price based on the December 30, 2011 net asset
value per Unit ($10 per Preferred Share, $10.68 per Class A Share
and $20.68 per Unit, as applicable). In aggregate, there were more
Class A shares tendered for retraction than Preferred shares. Since
Canadian Banc is required to maintain an equal number of shares
outstanding for each Class as per the prospectus, the Company must
increase the Class A shares to match the number of Preferred
shares.
Immediately after the special retraction payment on January 16,
2012, there will be 6,772,453 Preferred shares and 5,737,131 Class
A shares outstanding. In order to restore an equal amount of shares
outstanding for each Class, Class A shareholders on record as at
January 17, 2012 will receive approximately 1.180459885 Class A
shares for each Class A share outstanding. The increase in shares
(subdivision) is a non taxable event.
In addition, the monthly Class A share dividend target formula
will be adjusted in order to approximately maintain the same pre
subdivision dividend formula. This will result in shareholders
maintaining their current level of dividend income per month. The
new formula will be adjusted to provide Class A shares with regular
floating rate monthly distributions targeted to be at a rate per
annum equal to the prime rate plus 1.25% with a minimum targeted
annual rate of return of 4.25% and a maximum annual rate of return
of 8.50% based on the original issue price of $15 per Class A
share. The current Class A share dividend yield based on the
January 11, 2012 closing market price was 7.14%.
The intrinsic value of each investor's holdings in Class A
shares will be the same after the adjustment. The increase in the
number of shares would be proportionate to the reduction in the net
assets attributable to the Class A shares.
The table below is an illustrative example of the effects of the
subdivision with all numbers rounded.
---------------------------------------------------------------------------
Before After
Subdivision Subdivision
---------------------------------------------------------------------------
Class A shares owned (A) 1,000 (A) 1,180
---------------------------------------------------------------------------
Net asset value per Unit as at December 31,
2011 $ 20.68 $ 19.05
---------------------------------------------------------------------------
Par value of Preferred share $ 10.00 $ 10.00
---------------------------------------------------------------------------
Net asset value per Unit attributable to
Class A share (B) $ 10.68 (B) $ 9.05
---------------------------------------------------------------------------
Total net asset value attributable to Class
A shareholder (A x B) $10,680 $ 10,680
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Class A share current dividend rate per
floating rate formula $ 0.75 $ 0.6375
---------------------------------------------------------------------------
Class A share annual dividend payment $ 750 $ 752
---------------------------------------------------------------------------
(all numbers rounded)
---------------------------------------------------------------------------
The impact of the Class A share subdivision will be reflected in
the next reported net asset value per unit as at January 31, 2012.
Net assets of Canadian Banc after the retractions payments will be
approximately $135 million.
Contacts: Canadian Banc Recovery Corp Investor Relations
416-304-4443 or Toll free at 1-877-4-Quadra (1-877-478-2372)
www.primerateplus.com
Canadian Banc (TSX:BK)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Canadian Banc (TSX:BK)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024
