Global Diversified Investment Grade Income Trust II - Notification by Deutsche Bank of the withholding of the monthly premium payments on the swap

MONTREAL, March 16, 2015 /CNW Telbec/ - Global Diversified Investment Grade Income Trust II (the "Trust") announces that it has been notified by Deutsche Bank AG, Canada Branch ("DB") that the monthly premium payments on the swap corresponding to the defaulting reference obligations for which a press release was issued on November 21, 2014 will be withheld until a final loss is determined. The financial contract allows DB to withhold any such payments to be made to the Trust based on its own good faith estimate of the value of the defaulted reference obligation. The valuation process of the final loss could take up to 720 days from the date of the credit event notices, being on or about November 9, 2016.

The withholding together with the reduction of the monthly interest payment to be received further to the renewal on March 2, 2015 of the National Bank of Canada term deposit note as indicated in the press release of March 5, 2015, will result in a material decrease of the monthly revenues of the Trust. This decrease will impact the monthly distributions of the Trust. Future distributions, if any, would have to be funded from the cash currently held by the Trust and interest thereon.

About the Trust

The Trust provides an economic interest in an equity tranche of credit default swap agreement in respect of portfolios of mortgage-backed securities, asset-backed securities, structured finance securities and synthetic corporate exposures.

 

SOURCE GLOBAL DIVERSIFIED INVESTMENT GRADE INCOME TRUST II

For further information: Louis Arteau : 514-394-7563, http://info.fbn.ca/trusts

Organization Profile

GLOBAL DIVERSIFIED INVESTMENT GRADE INCOME TRUST II

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