TORONTO, June 10, 2014 /CNW/ - The Board of Directors of NewGrowth Corp.
(the "Company") has declared today ordinary dividends of $0.2055 per
Preferred Share and $0.2625 per Capital Share payable on June 26, 2014
to holders of record at the close of business on June 24, 2014.
Holders of the Preferred Shares are entitled to receive quarterly fixed
cumulative dividends equal to $0.2055 per Preferred Share. The
Company's Capital Share dividend policy is to pay holders of Capital
Shares quarterly dividends in an amount equal to the dividends received
by the Company on the underlying portfolio securities minus the
dividends payable on the Preferred Shares and all administrative and
operating expenses provided the net asset value per Unit at the time of
declaration, after giving effect to the dividend, would be greater than
the original issue price of the Preferred Shares.
The Company announced on April 21, 2014 that the final condition
required to extend the term of the Company for an additional five years
to June 26, 2019 had been met. The Company's Class B preferred shares,
Series 2 (the "Series 2 Preferred Shares") will be redeemed by the
Company on June 26, 2014 in accordance with their redemption provisions
at a price per share equal to the lesser of $13.70 and the net asset
value per Unit (currently, $54.66). In order to maintain the leveraged
"split share" structure of the Company, the Company intends to create
and issue a third series of Class B preferred shares (the "Series 3
Preferred Shares"), which are expected to be issued immediately
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 Series 3 Preferred Shares are offered.
NewGrowth Corp. is a mutual fund corporation whose investment portfolio
consists of publicly-listed securities of selected Canadian chartered
banks, telecommunication, pipeline and utility issuers. The Capital
Shares and Preferred Shares of NewGrowth Corp. are listed for trading
on The Toronto Stock Exchange under the symbols NEW.A and NEW.PR.C
SOURCE: NewGrowth Corp.
For further information:
Web site: www.scotiamanagedcompanies.com