GlobalBanc Advantaged 8 Split Corp.

GlobalBanc Advantaged 8 Split Corp.

December 18, 2009 08:00 ET

GlobalBanc Advantaged 8 Split Corp.: Press Release

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2009) - GlobalBanc Advantaged 8 Split Corp. (TSX:GBA.PR.A)(TSX:GBA) announces that no distribution will be paid on the Preferred Shares or on the Class A Shares for the quarter ending December 31, 2009.

In making this decision the Board of Directors considered the Company's expected cash flows from its portfolio investments and the anticipated expenses of the Company. The Board's priority is to preserve the Company's portfolio investments. If the Company's expenses, plus dividend payments on Preferred Shares or Class A Shares, were in excess of the Company's revenues, these amounts would have to be funded from the sale of portfolio investments.

The Board concluded that the anticipated cash flow, in excess of expenses, was not sufficient to allow for dividend payments without possibly eroding these portfolio investments.

The Company continues to use Bloomberg Dividend Forecasts on its portfolio investments to estimate future cash flows. These forecasts continue to be at levels similar to recent prior periods. However the Company's overall level of cash flow has declined because the recent annual redemption resulted in approximately 12% of the issued and outstanding Preferred Shares and Class A Shares being redeemed. This redemption was funded, in part, through the sale of portfolio investments.

The Board of Directors will continue to monitor the Bloomberg Dividend Forecast, the Company's cash flow and changes in its expenses in considering whether to reinstate the dividends payable on the Preferred Shares in the future.

Unitholders are reminded that the Preferred Shares, as a class, are entitled to receive, as and when paid in the discretion of the Board of Directors of the Company, cumulative dividends not exceeding $0.1125 per share per quarter. The shortfall below the prescribed amount of the Preferred Share dividend (currently, $0.435 in aggregate) will accumulate and, in accordance with the terms of the Preferred Shares and the Class A Shares, will be paid in priority to any payments on the Class A Shares.

This press release contains forward looking statements. Forward looking statements involve risks and uncertainties and are predictive in nature and actual results could differ materially from those contemplated by the forward looking statements.

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