Brookfield Soundvest Split Trust
TSX : BSD.UN
TSX : BSD.PR.A

Brookfield Soundvest Split Trust

March 27, 2015 16:02 ET

Brookfield Soundvest Split Trust (BSD.UN and BSD.PR.A) Announces Approval of Proposals

OTTAWA, ONTARIO--(Marketwired - March 27, 2015) - Brookfield Soundvest Split Trust (TSX:BSD.UN)(TSX:BSD.PR.A) (referred to as the "Trust") is pleased to announce that holders (the "Preferred Securityholders") of preferred securities (the "Preferred Securities") of the Trust and holders (the "Unitholders") of trust units of the Trust (the "Units") approved the extraordinary resolution relating to the Preferred Securities and the extraordinary resolution relating to the Units at a special meeting (the "Meeting") of the Preferred Securityholders and the Unitholders held on March 27, 2015.

The extraordinary resolution relating to the Preferred Securities will allow the Trust to implement the following:

  • extend the term of the Preferred Securities for additional five-year renewal terms following the scheduled maturity date of March 31, 2015;

  • determine the interest rate on the Preferred Securities for each subsequent extended five-year renewal term of the Preferred Securities, and set the interest rate for the first renewal term at 6.0% per annum; and

  • provide the Preferred Securityholders with the right to retract and receive repayment of their Preferred Securities on March 31, 2015, and at the end of each subsequent renewal term of the Preferred Securities, if they so choose (the "Preferred Special Repayment Right").

The extraordinary resolution relating to the Units will allow the Trust to implement the following:

  • provide the Unitholders with the right to retract, in the aggregate, a number of Units not exceeding the number of Preferred Securities tendered under the Preferred Special Repayment Right on March 31, 2015 and at the end of each subsequent renewal term of the Preferred Securities, if they so choose (the "Unit Special Retraction Right"), and receive redemption proceeds equal to the net asset value per Unit as of such dates, and to the extent that more Units are tendered for retraction under the Unit Special Retraction Right than Preferred Securities tendered for repayment under the Preferred Special Repayment Right, Units so tendered will be redeemed on a pro rata basis; and

  • in order to maintain the same number of the Units and the Preferred Securities outstanding, in the event that more Preferred Securities are tendered for repayment under the Preferred Special Repayment Right than Units tendered for retraction under the Unit Special Retraction Right, provide the Trust with the ability to consolidate the Units on or about March 31, 2015 and at the end of each subsequent renewal term of the Preferred Securities.

The Trust also announces today that holders of 1,988,024 Units have given notice to the Trust that they wish to exercise the Unit Special Retraction Right up to the number of Units not exceeding the number of Preferred Securities tendered pursuant to the right of Preferred Securityholders to retract and receive repayment of their Preferred Securities pursuant to the Preferred Special Repayment Right. As announced by the Trust on March 16, 2015, holders of 1,779,807 Preferred Securities have given notice to the Trust that they wish to exercise the Preferred Special Retraction Right.

In order to maintain an equal number of Units and Preferred Securities outstanding, 1,779,807 Units will be redeemed on March 31, 2015, on a pro rata basis, from the holdings of those Unitholders who have exercised the Unit Special Retraction Right. This means that 89.53% of the Units surrendered for redemption by Unitholders pursuant to the Unit Special Redemption Right will be retracted. As announced on March 16, 2015, the Trust is reinstituting the annual redemption right available to Unitholders and accordingly Unitholders will be able to redeem Units under the annual redemption right in November, 2015.

The manager, investment advisor and portfolio manager for the Fund is Brookfield Soundvest Capital Management Ltd. (the "Manager"), an established investment advisor, that provides investment management services to trusts, foundations, corporations and high net worth individuals.

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