TORONTO, Feb. 25 /CNW/ - The board of directors of High Income Preferred Shares Corporation (the "Corporation") announced today that shareholders of the Corporation have approved a special resolution authorizing the amendment of the articles of the Corporation to provide for the early redemption by the Corporation of the Series 1 Shares (TSX:HPF.pr.a), Series 2 Shares (TSX:HPF.pr.b) and Equity Shares of the Corporation and to revise the redemption amount for each Series 1 Share and Series 2 Share that will be paid by the Corporation to the holders thereof upon such early redemption (collectively, the "Approved Amendments"). The Approved Amendments were described in detail in the notice of special meeting and management information circular dated January 26, 2010 that was provided to shareholders of the Corporation in connection with the special meeting.
It is expected that the Corporation will file articles of amendment to give effect to the Approved Amendments and that, subject to the approval of the applicable securities regulatory authorities and the Toronto Stock Exchange ("TSX"), the Series 1 Shares, Series 2 Shares and Equity Shares will be redeemed by the Corporation effective as of March 12, 2010.
Redemption of the Series 1 Shares
Each holder of Series 1 Shares will receive an aggregate payment equal to $27.80 for each Series 1 Share held by them, such amount representing (a) the original investment amount of $25.00 paid in respect of each Series 1 Share, plus (b) the amount of all declared but unpaid dividends payable to holders of the Series 1 Shares and any dividends accrued up to the planned redemption date of March 12, 2010.
The Series 1 Shares will be de-listed from the TSX upon the redemption thereof by the Corporation, or otherwise at such time and in such manner as required by the TSX.
Redemption of the Series 2 Shares
Each holder of Series 2 Shares will receive an aggregate payment equal to $16.46 per Series 2 Share, such amount representing (a) the original investment amount of $14.70 paid in respect of each Series 2 Share less $0.28 per share (such amount representing one-half of the expected costs, on a per share basis, of effecting the Approved Amendments and to wind up and terminate the Corporation), plus (b) the amount of all declared but unpaid dividends payable to holders of the Series 2 Shares and any dividends accrued up to the planned redemption date of March 12, 2010.
The Series 2 Shares will be de-listed from the TSX upon the redemption thereof by the Corporation, or otherwise at such time and in such manner as required by the TSX.
Redemption of the Equity Shares
All of the Equity Shares, which do not trade on any stock exchange, are held by the manger of the Corporation, Navina Asset Management Inc. (formerly, Lawrence Asset Management Inc.) (the "Manager"). If the Equity Shares are redeemed on March 12, 2010 as planned, the Manager will receive an aggregate payment of approximately $138,575, such amount representing $0. 43 per Equity Share. This amount reflects the residual proceeds of the Corporation's portfolio after payment of all remaining accruals (including the accrued management fees of approximately $827,176) and after payment of the remaining portion of the expected costs of effecting the Approved Amendments and to wind up and terminate the Corporation. There are no distributions accrued on the Equity Shares.
About the Corporation:
The Corporation invests in a diversified portfolio consisting principally of common shares issued by corporations whose shares are included in the S&P 500 Index and the S&P/TSX 60 Index, income funds and investment grade debt securities. Navina Asset Management Inc. (formerly, Lawrence Asset Management Inc.) is both manager and investment manager of the Corporation.
SOURCE HIGH INCOME PREFERRED SHARES CORPORATION
For further information: For further information: Investor Relations, Catherine Stretch, (416) 362-6283, email@example.com