Allbanc Split Corp. announces minimum share condition has been satisfied
TORONTO, Jan. 7, 2013 /CNW/ - Allbanc Split Corp. (the "Company") announced today that the final condition required to extend the term of the Company for an additional five years to March 9, 2018 has been met as holders of 85.6% of Class A Capital Shares have elected to extend. Holders of Class A Capital Shares on December 13, 2012 approved the extension of the term of the Company subject to the condition that a minimum of 361,000 Class A Capital Shares remain outstanding after giving effect to the special retraction right (the "Special Retraction Right").
Under the Special Retraction Right, 104,212 Class A Capital Shares were tendered to the Company for retraction on March 8, 2013. The holders of the remaining 617,252 Class A Capital Shares will continue to enjoy the benefits of a leveraged participation in the capital appreciation of the Company's portfolio of publicly listed common shares of Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank while potentially deferring any capital gains tax liability which would otherwise be realized on the redemption of their Class A Capital Shares.
The Company's Class B preferred shares will be redeemed by the Company on March 8, 2013 in accordance with the redemption provisions as detailed in the Company's March 3, 2008 prospectus. Pursuant to these provisions, the Class B preferred shares will be redeemed at a price per share equal to the lesser of $26.75 and the Unit Value. In order to maintain the leveraged "split share" structure of the Company, the Company intends to create and issue a new series of Class C preferred shares, which are expected to be issued following this redemption. In addition, the Company may also undertake a concurrent public offering of additional Class A Capital Shares at the same time the Class C preferred shares are offered.
Capital Shares and Class B preferred shares of Allbanc Split Corp. are listed for trading on the Toronto Stock Exchange under the symbols "ABK.A" and "ABK.PR.B", respectively.
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