US Financial 15 Split Corp.

US Financial 15 Split Corp.

April 20, 2010 09:01 ET

US Financial 15 Split Corp.: Preferred Dividend Reinstated/Arrears Payment

TORONTO, ONTARIO--(Marketwire - April 20, 2010) - US Financial 15 Split Corp. ("US Financial 15") is pleased to announce the reinstatement of the regular monthly distribution of $0.04375 for each Preferred share ($0.525 annually) effective for the month of April as well as a dividend of $0.05 representing a portion of the accrued dividends in arrears. Both dividends will be payable on May 10, 2010 to Preferred shareholders on record as at April 30, 2010.

Management believes that the strong recovery in the US financial services companies held in the portfolio from the March 2009 lows combined with the current level of dividend income and option premiums from the covered call writing program presents the necessary conditions to reinstate the monthly dividend and to begin the process of making payments on the accrued dividends.

The 14 months of cumulative accrued dividends from February 2009 to March 2010 totaling $0.6125 per Preferred share are currently recorded as a liability of the Company and are accrued to the benefit of the Preferred shareholders. The accrued liability will decrease to $0.5625 per Preferred share after the payment of the $0.05 dividend. The timing and amount of any future payments of the cumulative dividends will be reviewed by the Board on an ongoing basis and will be based on market conditions, the level of the net asset value and income realized in the portfolio.

Regular monthly dividends of $0.04375 will continue each month and will be payable to Preferred shareholders on record on the last business day of each month.

The net asset value per unit as at April 15, 2010 was $7.17.

US Financial 15 invests in a high quality portfolio consisting of 15 U.S. financial services companies as follows: American Express, Bank of America, Bank of New York Mellon Corp., Citigroup, CME Group Inc., Fifth Third Bancorp, The Goldman Sachs Group, J.P. Morgan Chase & Co., Morgan Stanley, PNC Financial Services group Inc., Regions Financial Corp., State Street Corp., SunTrust Banks, U.S. Bancorp, and Wells Fargo. Shares held within the Portfolio are expected to range between 4-8% in weight but may vary from time to time. A covered call writing program is utilized to supplement the dividend income in the portfolio.

Distribution Details:  
Preferred Share (FTU.PR.A) $0.09375
Ex-Dividend Date: April 28 2010
Record Date: April 30, 2010
Payable Date: May 10, 2010

Contact Information

  • US Financial 15 Split Corp.
    Investor Relations
    416-304-4443 or Toll Free at 1-877-4-Quadra (1-877-478-2372)