Pathfinder Increases Distribution
TORONTO, April 16, 2014 /CNW/ - Middlefield Group, on behalf of Pathfinder Convertible Debenture Fund ("Pathfinder" or the "Fund"), is pleased to announce an increase of approximately 8% in the Fund's annual distribution rate for the 12 months ending May 31, 2015 from $0.78 per unit to $0.84 per unit. The increased distribution rate, which will take effect for holders of units of the Fund ("Unitholders") of record as of June 30, 2014, represents a yield of approximately 7.5% per annum based on the Fund's closing price on the Toronto Stock Exchange on April 14, 2014 of $11.16 per unit.
Further to the press release dated April 4, 2014, a special meeting of Unitholders has been scheduled for May 15, 2014. The primary purpose of the meeting is to seek Unitholder approval to extend the life of the Fund beyond its scheduled termination date of November 28, 2014. In addition, certain amendments to the declaration of trust will be proposed to address the recent change in the Canada Revenue Agency's interpretation of the Income Tax Act (Canada) in respect of forward purchase and sale agreements. If approved, these amendments will simplify the structure of the Fund by enabling it to invest directly in a portfolio of convertible debenture securities following the termination of its current forward purchase and sale agreement later this year. As a result, Unitholders will directly benefit from the elimination of the counterparty fee paid by the Fund under its forward agreement, which amounts to approximately 0.35% per annum, as well as from general and administrative cost savings due to the removal of the underlying fund associated with the forward agreement.
Since inception, Pathfinder has met its investment objectives, including providing Unitholders with cumulative monthly distributions of approximately $3.40 per unit as well as a total annualized return of 7.0% as at March 31, 2014. The amendments for which Unitholder approval is sought at the upcoming meeting will permit Unitholders to continue their investment in the Fund.
Pursuant to the increase, the distributions for the second quarter of 2014 will be payable to Unitholders as follows:
|Record Date||Payable Date||Distribution Per Trust Unit|
|April 30, 2014||May 15, 2014||$0.065|
|May 31, 2014||June 13, 2014||$0.065|
|June 30, 2014||July 15, 2014||$0.07|
Pathfinder trades on the Toronto Stock Exchange under the symbol "PCD.UN".
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to, among other things, the the amount of distributions paid by the Fund, expected benefits of extending the life of the Fund and the termination of the forward purchase and sale agreement. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including: as a result of changes in the general economic and political environment; changes in applicable legislation; the performance of the Fund; changes in portfolio composition; changes in distributions and dividends paid by issuers of securities included in the Fund's portfolio from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities included in the portfolio will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; and the level of borrowing by the Fund. There are no assurances the Fund will achieve the results contemplated by such forward-looking statements and the Fund does not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Fund, some of which are beyond the control of the Fund.
SOURCE Pathfinder Convertible Debenture FundFor further information:
visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.