MONTREAL, May 21, 2014 /CNW Telbec/ - Global Diversified Investment
Grade Income Trust ("Global DIGIT") declares the following monthly distributions composed of a regular
distribution of $0.027 per unit and a special distribution of $0.053
Paid in 2014
TSX Closing Price Per
May 21, 2014
May 30, 2014
June 13, 2014
The special distribution of $0.053 per unit represents a portion of the
excess cash of Global DIGIT which is not needed for the continuation of
the current operations.
The objective of Global DIGIT is to provide unitholders with varying
monthly distributions based on the applicable one-month bankers'
acceptance rate plus 2.00%. The current bankers' acceptance rate is
Global DIGIT announces an estimated net asset value ("NAV") per unit as at May 15, 2014 of $9.31.
The NAV is equal to the aggregate value of the assets less the aggregate
value of the liabilities. Substantially all of the assets of Global
DIGIT consist of cash and three credit default swaps entered into with
Deutsche Bank A.G. (Canada Branch) and the related collateral.
As disclosed earlier, Global DIGIT will redeem all its outstanding units
on September 9, 2014 (the "Termination Date"). The net income realized by Global DIGIT at the Termination Date, if
any, and paid out to unitholders will be taxable as ordinary income.
Unitholders should consult their tax advisors to determine how they are
going to be affected by the redemption price at Termination Date, on
the tax consequences arising from the sale of units on the secondary
market prior to such redemption and the most appropriate option given
their personal circumstances. Generally, unitholders who dispose of
their units prior to the Termination Date will realize a capital gain
or capital loss. In the absence of any default resulting in losses for
Global DIGIT, it is expected that the redemption price on the
Termination Date will be approximately $9.50 per unit. For a unitholder
having purchased its units at the time of issue at a price of $10.00,
who still owns these units at the Termination Date and based on
revenues and expenses assumptions and save for losses affecting Global
DIGIT, if any, it is expected that from the estimated amount of $9.50
per unit, approximately $4.75 will represent an attribution of taxable
ordinary income and approximately $4.75, a non-taxable return of
About Global DIGIT
Global DIGIT provides an economic interest in a mezzanine tranche of
credit default swap agreements in respect of portfolios of synthetic
corporate exposures, mortgage-backed securities, asset-backed
securities and structured finance securities.
SOURCE: Global Diversified Investment Grade Income Trust
For further information:
Louis Arteau : 514-394-7563