Global Credit Pref Corp.
TSX : GPA.PR.A

Global Credit Pref Corp.
Gatehouse Capital Inc.

Gatehouse Capital Inc.

May 06, 2010 12:47 ET

Global Credit Pref Corp. Announces Special Meeting

TORONTO, ONTARIO--(Marketwire - May 6, 2010) - Global Credit Pref Corp. (the "Company")(TSX:GPA.PR.A) announced that its board of directors has approved a proposal for consideration by shareholders to amend the articles of the Company to permit the Company to redeem all of the issued and outstanding Preferred Shares, except for one Preferred Share as determined by the board of directors of the Company, prior to the scheduled redemption date of September 30, 2015 (the "Proposal"). As a result of the Proposal, shareholders would have their Preferred Shares redeemed by the Company on June 8, 2010 and would be paid a redemption price per Preferred Share which would equal the net asset value per Preferred Share as of June 3, 2010 plus a redemption premium expected to be approximately $1.05 per Preferred Share. The credit linked note portfolio to which the Company has exposure has suffered eight defaults and if more than three additional defaults occur in the time remaining to maturity, shareholders risk losing all or a substantial portion of their investment. SciVest Capital Management Inc. (the "Investment Advisor") believes there are a number of reference entities in the credit linked note portfolio that are at a significant risk of default prior to the maturity of the credit linked note. Accordingly, the Company's board of directors, its manager, Gatehouse Capital Inc., and the Investment Advisor believe it is in the best interests of the shareholders to crystallize and preserve the remaining value of the Preferred Shares for shareholders. To facilitate this outcome, the issuer of the credit linked note has agreed to repurchase the note on or about June 3, 2010.

A special meeting of holders of Preferred Shares has been called and will be held on June 2, 2010 to consider and vote upon the Proposal. Details of the Proposal will be outlined in an information circular to be sent to shareholders in connection with the special meeting. Copies of the information circular will be available on www.sedar.com.

The preferred shares are listed for trading on the Toronto Stock Exchange under the symbol GPA.PR.A.

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