GlobalBanc Advantaged 8 Split Corp.
TSX : GBA
TSX : GBA.PR.A

GlobalBanc Advantaged 8 Split Corp.

July 02, 2008 17:00 ET

GlobalBanc Advantaged 8 Split Corp. Announces Preferred Share Downgrade and NAV Per Unit

TORONTO, ONTARIO--(Marketwire - July 2, 2008) - GlobalBanc Advantaged 8 Split Corp. (the "Company") (TSX:GBA.PR.A)(TSX:GBA) announces that DBRS Limited has lowered the rating on the Company's Preferred Shares (TSX:GBA.PR.A) from Pfd-4 (high) to Pfd-5 with a Stable Trend.

Current Net Asset Value ("NAV") per Unit is $9.70, comprised of $9.70 per Preferred Share and $0.00 per Class A Share. Since the NAV per Unit is currently below the $10 principal value of the Preferred Shares, the holders of the Preferred Shares would receive less than $10 if the portfolio were to be liquidated and proceeds distributed as at today's date. Based on the most recent dividends paid by the underlying companies, the Bank Portfolio currently generates enough yield to pay the fixed cumulative quarterly preferred dividends in the amount of $0.1125 per Preferred Share and the expenses of the Company. However, future changes in dividend policy by any of the banks included in the Bank Portfolio, among other things, may require the Company to further reduce NAV per Unit in order to sustain the dividend on the Preferred Shares. The redemption price payable for each Preferred Share outstanding on December 15, 2012 (the final redemption date) is equal to the lesser of: (i) $10.00 plus accrued and unpaid distributions; and (ii) the NAV per Preferred Share on that date.

NAV per Unit is reported daily on www.globalbancsplit.com.

Contact Information

  • First Asset (the Company's Administrator)
    Rob MacNiven
    Investor Relations
    (416) 642-1289 or 1-877-642-1289
    Website: www.globalbancsplit.com