NB Split Corp.

NB Split Corp.

December 12, 2008 07:00 ET

NB Split Corp. Announces NAV Per Unit

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2008) - NB Split Corp. (the "Company")(TSX:NBF)(TSX:NBF.PR.A) announces that the current Net Asset Value ("NAV") per Unit is $29.14, comprised of $29.14 per Preferred Share and $0.00 per Capital Share. Since the NAV per Unit is currently below the $32.72 principal value of the Preferred Shares, the holders of the Preferred Shares would receive less than $32.72 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 company, the National Bank Shares currently generate enough yield to pay the fixed cumulative quarterly preferred dividends in the amount of $0.3886 per Preferred Share and the expenses of the Company. However, future changes in dividend policy by National Bank, 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 February 15, 2012 (the final redemption date) is equal to the lesser of: (i) $32.72 plus accrued and unpaid distributions; and (ii) the NAV per Preferred Share on that date.

The Company also announces that it will commence publishing the NAV of the Preferred Shares and the Capital Shares on a daily basis on its website - www.nbsplit.com.

Contact Information

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