TORONTO, April 26 /CNW/ - (TSX: WFS; WFS.PR.A) - World Financial Split Corp. (the "Fund") is pleased to announce that
its Board of Directors has approved a proposal to extend the term of
the Fund for an additional seven years. The final redemption date for
the Class A Shares and Preferred Shares of the Fund is currently June
30, 2011 and the Fund proposes to implement a reorganization
("Reorganization") that will allow shareholders to retain their
investment in the Fund until at least June 30, 2018.
In connection with the Reorganization, holders of Class A Shares will
continue to benefit from the potential for leveraged capital
appreciation in a high quality portfolio consisting principally of
common shares of the ten largest financial services companies in each
of Canada, the United States of America and the rest of the world. If
the Reorganization is approved and implemented, holders of Preferred
Shares will continue to enjoy preferential quarterly cash dividends in
the amount of $0.13125 per Preferred Share representing a yield of
5.25% per annum on the original issue price of $10.00 per Preferred
As part of the Reorganization, the Fund is also proposing other changes
including changing the monthly retraction prices for the Class A Shares
and the Preferred Shares so that they are calculated by reference to
market price in addition to NAV and changing the dates by which notice
of monthly retractions needs to be provided and by which the retraction
amount will be paid. The Fund will also allow for the calculation of a
diluted NAV in the event the Fund should ever issue warrants or rights
to acquire additional Class A Shares or Preferred Shares.
Mulvihill Capital Management Inc. the manager of the Fund (the
"Manager"), believes the global financial services sector is poised for
strong returns over the next several years after experiencing one of
the worst financial crises in history over the 2007 - 2009 time period.
Subsequently, regulatory oversight and capital requirements increased
in order to reduce the risk of another crisis from happening. Despite a
decline in 2010 due to the concerns regarding European Sovereign
defaults, many of the companies within the Fund's portfolio universe
are well capitalized and are expected to return capital to shareholders
in the form of increased dividends and share repurchases which the
Manager believes should benefit share prices. The Manager also believes
that the Reorganization will allow the Fund to increase in value as the
global economy recovers and financial services companies around the
world grow stronger.
If the Reorganization is approved and implemented, shareholders will be
given a special retraction right to retract their Class A Shares or
Preferred Shares at NAV on June 30, 2011 on the same terms had the
final redemption date of the Fund not been extended. The redemption
date of the shares will automatically be extended for successive
seven-year terms after June 30, 2018 and shareholders will be able to
retract their Class A Shares or Preferred Shares at NAV prior to any
A special meeting of holders of Class A Shares and Preferred Shares has
been called and will be held on May 31, 2011 to consider and vote upon
the proposal. Further details of the proposal will be outlined in an
information circular to be prepared and delivered to holders of Class A
Shares and Preferred Shares in connection with the special meeting. The
Reorganization is also subject to all required regulatory approvals.
John Mulvihill, President and CEO
David Roode, President, Fund Services
A member of the Mulvihill Capital Management Inc.
Group of Funds
Mulvihill Structured Products
121 King Street West, Suite 2600
Toronto, Ontario, M5H 3T9
Commissions, trailing commissions, management fees and expenses all may
be associated with investments in investment funds. Please read the
prospectus before investing. Investment funds are not guaranteed, their
values change frequently and past performance may not be repeated.
SOURCE World Financial Split Corp.
For further information:
please contact Investor Relations at 416.681.3900, toll free at 1.800.725.7172 or visit www.mulvihill.com.