Prime Rate Plus Corp.

Prime Rate Plus Corp.

February 18, 2009 16:50 ET

Prime Rate Plus Corp.: Regular Monthly Dividend Declaration for Preferred Share

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2009) - Prime Rate Plus Corp. ("Prime Plus") declares its regular monthly distribution of $0.04167 (5.00% annualized) for each Preferred share which reflects the distribution policy of prime rate (3.00% as at February 13th) plus 0.75% annually. An annual Preferred share payment of 5.00% is the minimum payment as per the prospectus and the rate will not decline below this level. Distributions are payable March 10, 2009 to shareholders on record as of February 27, 2009. There will not be a distribution paid to the Class A shares for February 27, 2009 as per the Prospectus which states no regular monthly dividends or other distributions will be paid on the Class A shares in any month as long as the net asset value per unit is equal to or less than $15.00. The net asset value as of February 13, 2009 was $13.07.

Since inception Class A shareholders have received a total of $3.74 per share and Preferred shareholders have received a total of $2.23 per share inclusive of this distribution, for a combined total of $5.97 per share.

Prime Plus 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, Prime Plus will engage in a selective covered call writing program.

Distribution Details:

Preferred Share (PPL.PR.A) $0.04167

Ex-Dividend Date: February 25, 2009

Record Date: February 27, 2009

Payable Date: March 10, 2009

Contact Information

  • Prime Rate Plus Corp.
    Investor Relations
    (416) 304-4443 or Toll Free: 1-877-4-Quadra (1-877-478-2372)