Mulvihill Pro-AMS RSP Split Share Corp.
TSX : SPL.A
TSX : SPL.B

Mulvihill Pro-AMS RSP Split Share Corp.

August 20, 2010 09:41 ET

Mulvihill Pro-AMS RSP Split Share Corp. Announces Semi-Annual Results

TORONTO, ONTARIO--(Marketwire - Aug. 20, 2010) - Mulvihill Pro-AMS RSP Split Share Corp. (TSX:SPL.A)(TSX:SPL.B) (the "Fund") announces results for the six months ended June 30, 2010. Net realized loss amounted to $(1.5) million or $(2.88) per unit. Net assets were $27.14 per unit. Each unit consists of one Class A share and one Class B share.

The Fund's investment objectives for the Class A shares are to provide Class A shareholders with fixed cumulative preferential monthly cash distributions in the amount of $0.05417 per Class A share (6.5% per annum on the original issue price) and to pay such shareholders $10.00 for each Class A share held on redemption on December 31, 2013 (the "Termination Date") . Distributions to the Class A shareholders were suspended in October 2008.

The Fund's investment objectives with respect to the Class B shares are to pay Class B shareholders $20.00 for each Class B share held on the redemption of the Class B shares on the Termination Date; and on the Termination Date, to provide holders of Class B shares with the balance of the value of the Fund's Managed Portfolio after paying Class A shareholders $10.00 per Class A share.

To further enhance the Fund's ability to return the original issue price of Class A shares on termination, the Fund contributed every six months (commencing September 30, 2002) an amount targeted to be a minimum of $0.43 per Class A share outstanding representing 1/23rd of the issue price of a Class A share, to an account (the "Class A Share Forward Account") which was used to acquire Canadian equity securities. The Fund, at each such time, entered into a forward purchase and sale agreement (each a "Class A Share Forward Agreement" ) with Royal Bank of Canada ( "RBC" ) until the forward price that would be payable to the Fund under the Class A Share Forward Agreements on the Termination Date equaled the Class A share issue price ($10.00) multiplied by the number of Class A shares outstanding.

To provide the Fund with the means to return the original issue price of the Class B shares on termination, the Fund entered into a forward purchase and sale agreement with RBC pursuant to which RBC will agree to pay to the Fund an amount equal to $20.00 in respect to each Class B share outstanding on the Termination Date in exchange for the Fund agreeing to deliver to RBC equity securities which the Fund acquired with approximately 50% of the proceeds from the issue of the Class B shares.

The Fund's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The Fund's Class A and Class B shares are listed on the Toronto Stock Exchange under the symbols SPL.A and SPL.B.

Selected Financial Information: ($ Millions)  
   
Statement of Operations  
For the six months ended June 30, 2010  
(Unaudited)  
     
Revenue $0.0  
Net Realized Loss on Investments (1.3 )
  (1.3 )
Less: Expenses (0.2 )
     
Net Realized Loss $(1.5 )
     

Contact Information

  • Mulvihill Pro-AMS RSP Split Share Corp.
    Investor Relations
    416.681.3966 or Toll Free: 1.800.725.7172
    www.mulvihill.com