Global Diversified Investment Grade Income Trust II - Net Asset Value as at December 31, 2008 and Special Distribution



    MONTREAL, Jan. 28 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust II ("Global DIGIT II") (TSX: GII.UN) announces that its net asset
value ("NAV") per unit as at December 31, 2008, is estimated to be $2.14.
    The NAV on a particular date is equal to the aggregate value of the
assets of Global DIGIT II, less the aggregate value of its liabilities.
    Following the disengagement transaction with Silverstone Trust announced
on January 21, 2009 (the "Disengagement Transaction"), substantially all of
the assets of Global DIGIT II consist of cash and three credit default swaps
(the "GD Swaps") entered into with Deutsche Bank A.G. ("DB") and the related
collateral. Prior to such Disengagement Transaction, the GD swaps were with
Silverstone Trust ("Silverstone") which in turn, had entered into three mirror
credit default swaps with DB.
    The calculation of Global DIGIT II's NAV as at December 31, 2008 takes
into account pricing information provided by DB at mid-December 2008 for the
purpose of valuating the GD Swaps. The NAV calculation does not take into
account the creditworthiness of DB as counterparty to the GD Swaps.
    Based on pricing information received from DB as at January 15, 2009,
Global DIGIT II understands that changes in financial market conditions will
lead to a decrease in the value of the GD Swaps by an amount equivalent to
$0.07 per unit. Unitholders are cautioned that the exact NAV as at January 31,
2009 is not determinable before that time and will have to take into account
the value of the other assets and liabilities of Global DIGIT II, including
the value of the collateral owned by Global DIGIT II, which will only be known
at month's end. As a result, Global DIGIT II is not making any projections as
to the NAV of January 31, 2009, but simply wishes to provide investors with
certain information it has received.

    Special Distribution

    Following the Disengagement Transaction, Global DIGIT II received payment
from Silverstone of the amounts payable under the GD Swaps which were
suspended since August 2007 (the "Accrued Amounts"). These amounts
corresponded in the aggregate close to $1.17 per unit, being approximately
equivalent to $0.0687 per unit per month lapsed since the suspension. However,
Global DIGIT II declared a one-time distribution of $1.07 per unit, retaining
the equivalent of approximately $0.10 per unit, representing an aggregate
amount of about $1 million, being less than 1% of Global DIGIT II's assets.
Global DIGIT II has decided to keep this cash amount as a reserve to meet
future obligations which may arise from time to time until the expected
maturity date of Global DIGIT II. Global DIGIT II will monitor this cash
reserve having regards to its obligations from time to time.
    Moreover, following closing of the Disengagement Transaction, Global
DIGIT II also received from Silverstone a one-time payment of $0.635 per unit,
representing the amounts accreted (the "Accreted Amounts") in respect of the
residual amount that would otherwise have been payable to Global DIGIT II at
the maturity date of the GD Swaps. These amounts were accruing at the
Silverstone level and were destined to recover the initial public offering
costs of Global DIGIT II of $0.65 per unit. As a result, taking into account
the payment of the distribution of $0.635 per unit announced below, the
maximum amount repayable on the expected maturity date out of the initial
subscription price of $10.00 per unit will be limited to $9.35 per unit in the
absence of any future Credit Events resulting in a loss under the GD Swaps.
    Considering that Global DIGIT II has received payment of the Accreted
Amounts prior to the expected maturity date of the GD Swaps, Global DIGIT II
hereby announces that it is declaring a one-time distribution of $0.635 per
unit, payable on March 13, 2009 to unitholders of record on February 27, 2009.
Although the exact tax treatment of the Accreted Amounts by Global DIGIT will
not be known before the end of its fiscal year, it is expected that the
payment of the Accreted Amounts should not trigger an income inclusion for
Global DIGIT and would be treated as a capital distribution to current
unitholders.

    Implied NAV Following the Special Distribution

    Following the receipt of pricing information from DB for the purpose of
calculating the NAV as at January 31, 2009, Global DIGIT II wishes to provide
unitholders with an overview of its NAV position. The table below illustrates
the implied NAV following the distributions announced since January 21, 2009
and the most recent pricing information received from DB with respect to the
GD Swaps. As indicated above, the implied NAV is only indicative, as the final
NAV as at January 31, 2009 will have to take into account the value of the
other assets and the liabilities of Global DIGIT II valued as at such time,
and which cannot be presently determined:

    
    NAV per unit as at December 31, 2008...........................  $2.14
    Implied decrease in NAV based upon the pricing information
     received from DB.............................................. ($0.07)
    One-time distribution payable on February 13, 2009............. ($1.07)
    Distribution for the month of January, 2009, payable on
     February 13, 2009............................................. ($0.0687)
    One-time distribution payable on March 13, 2009 announced
     today......................................................... ($0.635)
                                                                   ----------
    Implied NAV as at January 31, 2009 giving effect to the
     foregoing but not taking into account any other changes in the
     value of the other assets and in the liabilities since December
     31, 2008 (rounded)............................................. $0.30
    

    With the distribution of $0.635 per unit announced today, the total
distributions declared since the beginning of January 2009 amount to $1.77 per
unit.
    Some of the statements contained in this press release, including those
that are predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as "expects", "anticipates", "intends",
"plans", "believes", "estimates", "implied" or similar expressions, are
considered to be forward-looking statements within the meaning of securities
laws. By their very nature, such forward-looking statements require Global
DIGIT II to make assumptions and involve inherent risks and uncertainties,
both general and specific. Investors are cautioned not to place undue reliance
on such forward-looking statements, as different factors, many of which are
beyond Global DIGIT II's control, could cause actual future results,
conditions, actions or events to vary materially from the objectives,
projections, expectations, estimates or intentions included in these
forward-looking statements. Except as required by law, Global DIGIT II does
not undertake to update any forward-looking statements, whether written or
oral, that may be made from time to time, by it or on its behalf. With respect
to the implied NAV as at January 31, 2009, some of these assumptions include,
without limitation, the accuracy and absence of change in the pricing
information received from DB as counterparty to the GD Swaps as at January 15,
2009, and the absence of change in the value of the assets and liabilities of
Global DIGIT II since their last valuation as at December 31, 2008. The
factors that may impact the value of such assets and liabilities and the
implied NAV include, without limitation, future Credit Events affecting the
Reference Obligations, a deterioration in the creditworthiness of the issuer
of the financial instruments given as collateral under the GD Swaps, an
increase or decrease in the value of such financial instruments, whether due
to a change in interest rates, liquidity for such instruments or other
factors, and any unforeseen liability.

    About Global DIGIT II

    Global DIGIT II provides an economic interest in an equity tranche of
credit default swap agreements in respect of portfolios of mortgage-backed
securities, asset-backed securities, structured finance securities and
synthetic corporate exposures.




For further information:

For further information: François Rivard, (514) 879-6405,
http://info.fbn.ca/trusts

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Global Diversified Investment Grade Income Trust II

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