World Financial Split Corp. Announces Shareholder Approval of Proposal to Extend Scheduled Termination Date
May 31 2011 - 11:24AM
Marketwired
World Financial Split Corp. (TSX: WFS)(TSX: WFS.PR.A) (the "Fund")
is pleased to announce that holders of Class A Shares and holders
of Preferred Shares of the Fund have approved a proposal to extend
the term of the Fund for seven years beyond its scheduled
termination date of June 30, 2011, and for automatic successive
seven-year terms after June 30, 2018.
As a result, holders of Class A Shares will benefit from ongoing
leveraged exposure to a high-quality portfolio consisting
principally of common equity securities selected from the ten
largest (by market capitalization) financial services companies in
each of Canada, the United States and the rest of the world.
Holders of Preferred Shares will continue to benefit from fixed
cumulative preferential quarterly cash dividends in the amount of
$0.13125 per Preferred Share representing a yield of 5.25% per
annum on the original issue price of $10.00 per Preferred Share and
an attractive seven-year term.
As part of the extension of the term of the Fund, the Fund will
also make other changes, including: (i) provide a special
redemption right to enable holders of Class A Shares and Preferred
Shares to retract their shares on June 30, 2011 on the same terms
that would have applied had the Fund redeemed all Class A Shares
and Preferred Shares in accordance with the existing terms of such
shares; (ii) change the monthly retraction prices for the Class A
Shares and the Preferred Shares such that monthly retraction prices
are calculated by reference to market price in addition to net
asset value and to change the notice period and payment period for
the exercise of such rights and the payment of the retraction
amount relating thereto; and (iii) consolidate the Class A Shares
or redeem the Preferred Shares on a pro rata basis, as the case may
be, in order to maintain the same number of Class A Shares and
Preferred Shares outstanding.
Shareholders who exercise the special redemption right will
receive the amount which they would have received had the June 30,
2011 termination date not been extended. Payments for shares
tendered pursuant to the Special Retraction Right will be made no
later than 10 business days after June 30, 2011, provided that such
shares have been surrendered for redemption on or prior to 5:00
p.m. (Toronto time) on June 17, 2011. The retraction price per
Class A Share to be received by a holder of Class A Shares under
the Special Retraction Right will be equal to the greater of (a)
the NAV per Unit on the Special Retraction Date minus $10.00 and
(b) nil. The retraction price per Preferred Share to be received by
a holder of Preferred Shares under the Special Retraction Right
will be equal to the lesser of: (a) $10.00; and (b) the NAV of the
Fund divided by the number of Preferred Shares outstanding on the
Special Retraction Date. Any declared and unpaid distributions
payable on or before the Special Retraction Date in respect of
Class A Shares or Preferred Shares tendered for retraction on the
Special Retraction Date will also be paid on the retraction payment
date.
Commissions, trailing commissions, management fees and expenses
all may be associated with fund investments. Please read the
prospectus before investing. Investment funds are not guaranteed,
their values change frequently and past performance may not be
repeated.
A member of the Mulvihill Capital Management Inc. Group of
Funds
Contacts: Mulvihill Structured Products John Mulvihill President
and CEO 416.681.3900 or 1.800.725.7172 Mulvihill Structured
Products David Roode President, Fund Services 416.681.3900 or
1.800.725.7172 Mulvihill Structured Products 121 King Street West,
Suite 2600 Toronto, Ontario, M5H 3T9 416.681.3900 or 1.800.725.7172
info@mulvihill.com www.mulvihill.com
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