Financial Services Income Streams

Financial Services Income Streams

January 28, 2011 09:57 ET

Financial Services Income STREAMS: Gives Final Notice of the Redemption of All Outstanding Equity Dividend Shares and Capital Yield Shares Effective February 1, 2011

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2011) - Financial Services Income STREAMS Corporation (the "Company") hereby provides the final notice that all of its outstanding Equity Dividend shares (TSX:STR.E) and all of its outstanding Capital Yield shares (TSX:STR) will be redeemed effective February 1, 2011. This redemption is required by the provisions of the Company's articles of incorporation, as amended, and has previously been discussed in the Company's annual information form, financial statements, and other continuous disclosure documents and also in a December 22, 2010 press release.

The capital repayment forward agreement which the Company has with an affiliate of the Toronto-Dominion Bank will, assuming due payment thereunder, provide the Company with the funds necessary to redeem the Capital Yield shares at a redemption price of $25.00 per share, which was the initial issue price of those shares in October 2000.

Holders of the Equity Dividend shares will receive their pro rata share of the net asset value of the Company calculated as at the close of business on January 31, 2011, less $25.00 per Capital Yield share required for the Company to make the redemption payments owing on the Capital Yield shares.

Based on the most recently calculated net asset value of the Company per Unit (a unit consisting of one Equity Dividend share and one Capital Yield share) of $34.78, holders of Equity Dividend shares would be entitled to receive approximately $9.78 per Equity Dividend share if this value was maintained to January 31,2011. All portfolio securities have now been liquidated and the final net asset value per unit as at January 31, 2011 will be subject to all the standard final year end accounting accruals.

Payment of the redemption prices owing on the Equity Dividend and the Capital Yield shares are expected to be paid on February 11, 2011, and will be paid to the beneficial holders of such shares through payment to the CDS participant through which such shares are held.

Over the life of the Company, Equity Dividend shareholders have received 122 monthly distributions for a total of $17.88 per Equity dividend share and Capital Yield shareholders have received $4.25 in total distributions per Capital Yield share.

The Company anticipates that trading in the Equity Dividend shares and the Capital Yield shares on the Toronto Stock Exchange will be halted at the opening of trading on February 1, 2011 and that such shares would then be de-listed from the Exchange effective the close of trading on that date. Once all necessary tax clearance certificates are obtained and other corporate formalities observed, it is expected that the Company will then be dissolved.

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Contact Information

  • Financial Services Income STREAMS
    Investor Relations
    416-304-4443 or Toll free: 1-877-4-Quadra (1-877-478-2372)