MONTREAL, July 17, 2012 /CNW Telbec/ - Global Diversified Investment
Grade Income Trust II ("Global DIGIT II") declares the following
special and monthly distributions consisting of partial capital
Global distribution Amount (per unit)
Total Distributions declared or paid in 2012 (all capital
TSX Closing Price per unit on July 17, 2012
July 31, 2012
August 15, 2012
The current monthly distribution is set at $0.018 per unit. In addition
to this regular distribution, a special distribution of $0.05 per unit
is declared by Global DIGIT II, bringing the distributions payable on
August 15, 2012 to $0.068 per unit. Global DIGIT II is distributing a
portion of the excess cash received as part of the redemption process
of 2011 which is deemed not needed for its current operations.
Currently 15.4% of the reference obligations underlying the credit
default swap C, which is the only swap remaining as described below,
are rated "D" and accordingly there is a significant likelihood that
further credit event notices could be received. If such notices are
received, the investment income of Global DIGIT II would for the most
part be eliminated bringing the monthly distribution close to nil.
In accordance with the press release issued on December 12, 2011
relating to the settlement of the credit events notified in
November 2009 to Global DIGIT II and the final recovery level of zero
for the related reference obligations, monthly distributions were set
to equal approximately the five-year government of Canada bond yield,
as at March 2010, less a spread of 0.4% to 1%, or $0.015 to $0.02 per
unit. Taking into account the total loss of the credit default swaps A
and B as disclosed in the same press release, only credit default
swap C remains in the assets of Global DIGIT II.
Global DIGIT II also announces that the net asset value ("NAV") per unit
as of July 15, 2012 was estimated to be $0.47.
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.
Substantially all of the assets of Global DIGIT II consist of cash and
one credit default swap entered into with Deutsche Bank A.G. (Canada
Branch) and the related collateral.
About Global DIGIT II
Global DIGIT II provides an economic interest in an equity tranche of a
credit default swap agreement in respect of portfolios of residential
mortgage-backed securities, commercial asset-backed and mortgage-backed
securities, consumer asset-backed securities, structured exposures to
mortgage-backed and asset-backed and corporate securities.
SOURCE GLOBAL DIVERSIFIED INVESTMENT GRADE INCOME TRUST II
For further information:
François Rivard: 514-879-6405