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

Mulvihill Pro-AMS RSP Split Share Corp.

March 26, 2010 09:00 ET

Mulvihill Pro-AMS RSP Split Share Corp. Announces Year End Results

TORONTO, ONTARIO--(Marketwire - March 26, 2010) - Mulvihill Pro-AMS RSP Split Share Corp. (the "Fund") (TSX:SPL.A)(TSX:SPL.B) announces results for the year ended December 31, 2009. Net realized income before distributions amounted to $2.7 million or $4.35 per unit. Net assets were $26.66 per unit.

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 contributes, 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 will be used to acquire Canadian equity securities. The Fund, at each such time, enters 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 equals 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 has 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 Net Assets 2009
Assets $ 15.9
Liabilities 5.9
Net Assets (Shareholders Equity) $ 10.0
   
Statement of Financial Operations  
Income $ -
Expenses (0.4)
Net Investment Loss $ (0.4)
   
Net Gain on Investments 3.1
Net Realized Income before Distributions $ 2.7

A member of the Mulvihill Capital Management Inc. Group.

Contact Information

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