ROC Pref III Corp. Announcement



    TORONTO, Sept. 15 /CNW/ - ROC Pref III Corp. ("ROC III") announced that
the Lehman Brothers Holdings Inc.'s ("LBHI") announced intention to file a
petition under Chapter 11 of the U.S. Bankruptcy Code with the United States
Bankruptcy Court for the Southern District of New York is expected to
constitute a credit event under the credit linked note ("CLN") issued by
TD Bank.
    This credit event is a consequence of the ongoing extremely difficult
conditions facing the United States financial system and follows closely on
the heels of the rescue by the US government of the institutions known as
Fannie Mae and Freddie Mac ("GSEs") described in press releases issued by
ROC III on September 8 and 11, 2008.
    As disclosed in ROC III's IPO prospectus, the credit linked note to which
ROC III has exposure is unaffected by defaults by up to 8 reference companies
in the portfolio of Reference Companies to which returns on the CLN are
linked. In light of these recent events ROC III is providing an update on the
number of additional defaults that it can sustain. Assuming a credit event
with respect to LBHI occurs, and taking into account the potential full impact
of the two recent GSE credit events, ROC Pref III Corp. will be able to
sustain approximately 4.3 more Credit Events (based on the value of the
trading reserve account which based on the last valuation is equivalent to 0.4
defaults) and still be able to pay $25.00 per Preferred Share at maturity and
continue to pay its regular quarterly distributions. In the event ROC III
sustains 5 additional Credit Events an amount of between $15 and $16 per
Preferred Share is projected to be returned to preferred shareholders at
maturity based on the current value of the trading reserve account that forms
part of the CLN and dividends will be lowered by the same ratio as principal.
In the event ROC III experiences 6 or more defaults no amount is expected to
be available to preferred shareholders at maturity.
    Connor, Clark & Lunn will host a conference call to discuss the
implications of recent events on Tuesday September 16, 2008 at 9:00 AM EST.
The conference call number is (416) 644-3415 or 1 (800) 733-7571 and the
replay number is (416) 640-1917 or 1 (877) 289-8525. The pass code is 21283536
followed by the number sign.
    ROC Pref III Corp.'s preferred shares are currently rated P-2 (low) by
Standard & Poor's and trade on the Toronto Stock Exchange under the symbol
RPB.PR.A.





For further information:

For further information: please visit www.cclcapitalmarkets.com or
contact: Neil Murdoch, President & CEO, Connor, Clark & Lunn Capital Markets
Inc., (416) 364-2839, nmurdoch@cclgroup.com or Darren Cabral, Vice-President,
Connor, Clark & Lunn Capital Markets Inc., (416) 214-6182 or 1-888-276-2258,
dcabral@cclgroup.com

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Connor, Clark & Lunn Capital Markets Inc.

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ROC PREF III CORP.

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