TDb Split Corp.

TDb Split Corp.

August 26, 2009 16:17 ET

TDb Split Corp.-Portfolio Update

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2009) - TDb Split Corp. ("the Company") was created to provide exposure to the common shares of Toronto Dominion Bank ("TD Bank") through two classes of securities, the Priority Equity Shares and the Class A Shares (a "Unit"). As stated in the prospectus, holders of the Priority Equity Shares are to be provided with a stable yield and downside protection on the return of their initial investment. Class A Shares are to be provided with leveraged exposure to TD Bank common shares including both increases and decreases in the value of the common shares of TD Bank and the benefit of any increases in the dividends paid by TD Bank on its common shares.

Since inception of the Company on August 7, 2007 the price of TD Bank common shares traded from $69.03 and descended to a low of $32.80 in mid February 2009. This sharp decline in TD Bank had resulted in the Company's net asset value being reduced significantly and as mentioned in previous updates, had required the Company to implement the Priority Equity Portfolio Protection Plan (the "Plan") in accordance with the prospectus. As a result of implementing the Plan, the Company had been required to sell a significant amount of the TD Bank common shares held in the Portfolio and acquire fixed income securities. Since the February 2009 lows, TD Bank common shares have had a significant price appreciation allowing the Company to greatly increase the common shares held within the Portfolio and unwind the Plan. The Company's total net asset value is approximately $12.70 per unit as at August 25, 2009 and is now predominately invested in TD Bank common shares.

The portfolio is continually rebalanced and adjusted based on market conditions to provide both security for Priority Equity shareholders and upside potential for Class A shareholders. The Company may buy or sell additional shares of TD Bank, and/or option positions based on market conditions and provided that the Company remains in compliance with the Priority Equity Portfolio Protection Plan.

Contact Information

  • TDb Split Corp.
    Investor Relations
    416-304-4443 or toll free at 1-877-4-Quadra (1-877-478-2372)