MONTREAL, Jan. 19, 2016 /CNW Telbec/ - Global Diversified Investment Grade Income Trust II announces an estimated Net Asset Value per unit as at January 15, 2016 of $0.25. This value is equal to the value of the assets less liabilities. The assets consist mainly of cash.
Unitholders may surrender their units for redemption pursuant to the annual redemption privilege. The Unitholders whose units are redeemed on the annual redemption date (February 29, 2016) will be entitled to receive the unwind price. The unwind price is an amount equal to (i) the bid received by the Trust to terminate the applicable portion of the financial contract and (ii) the market value of such portion of the permitted investments securing the financial contract, less the unwind costs. As of today, the unwind price is estimated at $0.17 per unit. Any Unitholder wishing to surrender its units may do so by causing its investment broker or dealer to deliver to CDS Clearing and Depositary Services Inc. a written notice of the holder's intention to have its units redeemed no later than 4 p.m. (EST) on January 29, 2016.
Further to the credit events notified by Deutsche Bank to the Trust in November 2014, the Trustee expects that the financial contract is most likely to be terminated in November 2016 and, according to the terms of the financial contract, all permitted investments securing the financial contract will then be transferred to Deutsche Bank in satisfaction of the loss incurred by the Bank. The Trust would then cease to have a purpose and its winding up would be initiated. At the present time, the final distribution to be paid as a result of such winding up is expected to be approximately $0.21 per unit.
About the Trust
The Trust 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: Louis Arteau : 514-394-4593, http://info.fbn.ca/trusts