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
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 Trust
For further information:
Louis Arteau : 514.394.7563