TD Split Inc.

TD Split Inc.

September 15, 2015 16:30 ET

TD Split Inc. Announces Final Redemptions

TORONTO, ONTARIO--(Marketwired - Sept. 15, 2015) - TD Split Inc. (the "Company") announced today that, in accordance with the expiration of the term and as set out in the short form prospectus of the Company dated October 26, 2010 (the "Prospectus"), the Company will redeem all outstanding Class C Preferred Shares and Class C Capital Shares (collectively, the "Shares") on November 15, 2015 (the "Redemption Date") as scheduled and in accordance with their share provisions.

Prior to the Redemption Date, Timbercreek Asset Management Ltd. will sell the Company's portfolio of TD Bank common shares to fund the redemptions. On the Redemption Date, in accordance with the share provisions for the Shares, holders of Class C Preferred Shares shall be entitled to receive a redemption price per share equal to the lesser of $10.00 and the Company's unit value. Holders of Class C Capital Shares shall be entitled to receive a redemption price per share equal to the amount by which the unit value exceeds $10.00, or provided the holder tenders a cash amount of $10.00 for each Class C Capital Share to be redeemed at least 20 business days prior to the Redemption Date, TD Bank common shares represented by such holder's pro rata share of the Company's portfolio of TD Bank common shares plus (or minus) the pro rata share of the amount by which the value of the other assets of the Company exceed (or are less than) the liabilities of the Company as at the Redemption Date and the redemption value at the Class E Shares.

The Company was established to generate dividend income for the Class C Preferred Shares while providing holders of the Class C Capital Shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of The Toronto-Dominion Bank. In that respect, as of August 15, 2015, the Class C Preferred Shares, since their issuance in 2010, have generated a consistent 4.75% annual yield, with no change to the par value, while the Class C Capital Shares have delivered a net capital appreciation of 11.43% annualized, which compares to the underlying TD bank stock appreciation of 7.5%.

Information concerning TD Split Inc. is available on our website at http://www.timbercreek.com/td-split-inc.

Forward looking statements:

This release includes forward-looking statements regarding the Company which may include, but is not limited to, the expectations regarding the redemption prices payable and the timing of the Redemption Date. Such statements are based on the current expectations of management. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company.

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