Canadian Banc Recovery Corp
TSX : BK
TSX : BK.PR.A

Canadian Banc Recovery Corp

January 18, 2012 09:00 ET

Canadian Banc Recovery Corp: Regular Monthly Dividend Declaration for Class A and Preferred Share

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2012) - Canadian Banc Recovery Corp ("The Company") declares its regular monthly distribution of $0.05313 (4.25% annualized based on the original issue price of $15.00 per share) for each Class A share. This rate ensures Class A Shareholders on record as at January 17, 2012 maintain the same level of dividend income as before the rebalancing of the Class A shares. Class A Shareholders after rebalancing hold approximately 1.18 shares for every one share previously held. Net dividend income per month remains the same as outlined in the January 12, 2012 press release. The rate reflects the distribution policy of Canadian prime rate (3.00% as at January 13, 2012) plus 1.25% annually. The current Class A share dividend yield based on the January 17, 2012 closing market price was 7.1%. The Company also declares its regular monthly distribution of $0.04167 (5.00% annualized) for each Preferred share which reflects the distribution policy of prime rate plus 0.75% annually. An annual Class A payment of 4.25% and a Preferred share payment of 5.00% are the minimum payments as per the distribution policy. Distributions are payable February 10, 2012 to shareholders on record as of January 31, 2012.

Since inception Class A shareholders have received a total of $5.86 per share and Preferred shareholders have received a total of $3.69 per share inclusive of this distribution, for a combined total of $9.55 per share.

The Company invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto- Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, The Company will engage in a selective covered call writing program.

Distribution Details:
Class A Share (BK) $0.05313
Preferred Share (BK.PR.A) $0.04167
Ex-Dividend Date: January 27, 2012
Record Date: January 31, 2012
Payable Date: February 10, 2012

Contact Information

  • Canadian Banc Recovery Corp
    Investor Relations
    416-304-4443 or toll free at 1-877-4-Quadra (1-877-478-2372)
    www.primerateplus.com