S Split Corp.

S Split Corp.

October 22, 2014 15:28 ET

S Split Corp. Announces Shareholder Approval of Proposal to Extend Scheduled Termination Date

TORONTO, ONTARIO--(Marketwired - Oct. 22, 2014) - S Split Corp. (the "Fund") (TSX:SBN)(TSX:SBN.PR.A) is pleased to announce that holders of Class A Shares and holders of Preferred Shares of the Fund have approved a proposal to extend the term of the Fund for seven years beyond its scheduled termination date of December 1, 2014, and for automatic successive seven-year terms after November 31, 2021.

As a result, holders of Class A Shares will continue to benefit from the potential for leveraged capital appreciation in a portfolio consisting of common shares of The Bank of Nova Scotia and monthly distributions of 6.0% per annum of the net asset value of the Class A Shares. Holders of Preferred Shares will continue to benefit from fixed cumulative preferential monthly cash dividends in the amount of $0.043750 per Preferred Share representing a yield of 5.25% per annum on the original issue price of $10.00 per Preferred Share.

As part of the extension of the term of the Fund, the Fund will also make other changes, including: (i) provide a special redemption right to enable holders of Class A Shares and Preferred Shares to retract their shares on December 1, 2014 on the same terms that would have applied had the Fund redeemed all Class A Shares and Preferred Shares in accordance with the existing terms of such shares; (ii) change the monthly retraction prices for the Class A Shares and the Preferred Shares such that monthly retraction prices are calculated by reference to market price in addition to net asset value; and (iii) consolidate the Class A Shares or redeem the Preferred Shares on a pro rata basis, as the case may be, in order to maintain the same number of Class A Shares and Preferred Shares outstanding.

Shareholders who exercise the special redemption right will receive the amount which they would have received had the December 1, 2014 termination date not been extended. Payments for shares tendered pursuant to the Special Retraction Right will be made no later than 10 business days after December 1, 2014, provided that such shares have been surrendered for redemption on or prior to 5:00 p.m. (Toronto time) on November 17, 2014. The retraction price per Class A Share to be received by a holder of Class A Shares under the Special Retraction Right will be equal to the greater of (a) the NAV per Unit on December 1, 2014 (the "Special Retraction Date") minus $10.00 and (b) nil. The retraction price per Preferred Share to be received by a holder of Preferred Shares under the Special Retraction Right will be equal to the lesser of: (a) $10.00; and (b) the NAV of the Fund divided by the number of Preferred Shares outstanding on the Special Retraction Date. Any declared and unpaid distributions payable on or before the Special Retraction Date in respect of Class A Shares or Preferred Shares tendered for retraction on the Special Retraction Date will also be paid on the retraction payment date.

For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit www.strathbridge.com.

David Roode, President, Fund Services

Contact Information

  • Strathbridge Asset Management Inc.
    121 King Street West
    Suite 2600
    Toronto, Ontario, M5H 3T9
    416.681.3966; 1.800.725.7172