Global Diversified Investment Grade Income Trust - Termination of the Financial Contracts and Upcoming Special Measures for the 2013 Annual Redemption
MONTRÉAL, July 23, 2013 /CNW Telbec/ - Global Diversified Investment Grade Income Trust ("Global DIGIT" or the "Trust") announces today that Deutsche Bank A.G. Canada Branch ("Deutsche Bank") confirmed its intention to terminate the Financial Contracts in September 2014 and that it is in discussion with Deutsche Bank and National Bank of Canada to provide for enhanced tendering procedures for this year's annual redemption privilege of Global DIGIT Units to help Unitholders in deciding whether or not to participate in the annual redemption process.
Termination of the Financial Contracts
In order to provide exposure to globally diversified portfolios, the Trust entered in 2004 into three credit default swaps with Deutsche Bank (the "Financial Contracts") and granted security to secure its obligations under such Financial Contracts.
The Financial Contracts had a scheduled termination date of September 9, 2016 but Deutsche Bank had an option to terminate such contracts on September 9, 2014 and then on a quarterly basis for a period up to September 9, 2016. Deutsche Bank has confirmed that it will terminate such Financial Contracts on September 9, 2014. In the absence of any default in the underlying portfolios of reference obligations resulting in losses for the Trust, the full amount of the collateral will be released to the Trust as well as the credit default swap receivable.
2013 Enhanced Annual Tendering Procedure.
For the 2013's annual redemption privilege, the Trust is in discussion with each of Deutsche Bank and National Bank Canada to provide for indicative bids and final bids in support of the annual redemption privilege and enhanced tendering procedures. Once these discussions are finalized, the Trust will issue a press release pertaining to the tendering procedures for the 2013 Annual Redemption Privilege.
About Global DIGIT
Global DIGIT provides an economic interest in a mezzanine tranche of credit default swap agreements in respect of portfolios of synthetic corporate exposures, mortgage-backed securities, asset-backed securities and structured finance securities.
SOURCE Global Diversified Investment Grade Income TrustFor further information:
Louis Arteau : 514.394.7563