TORONTO, Dec. 30, 2015 /CNW/ - Allbanc Split Corp. II (the "Company") announced today that the final condition required to extend the term of the Company for an additional five years to February 28, 2021, has been met as holders of approximately 85% of Class A Capital Shares ("Capital Shares") have elected to extend. Holders of Capital Shares previously approved the extension of the term of the Company provided a minimum of 1,000,000 Capital Shares remain outstanding after giving effect to the special retraction right (the "Special Retraction Right").
Under the Special Retraction Right, 243,022 Capital Shares were tendered to the Company for payment on February 26, 2016. The holders of the remaining 1,375,134 Capital Shares will continue to enjoy the benefits of a leveraged participation in the capital appreciation of the Company's portfolio while potentially deferring any capital gains tax liability which would otherwise be realized on the redemption of their Capital Shares.
The Company's Class B Preferred Shares, Series 1 will be redeemed by the Company on February 26, 2016 in accordance with the redemption provisions at a price per share equal to the lesser of $21.80 and the Net Asset Value per Unit. In order to maintain the leveraged "split share" structure of the Company, the Company intends to create and issue a new series of Class B Preferred Shares to be called the Series 2 Preferred Shares, which are expected to be issued immediately following this redemption.
Allbanc Split Corp. II is a mutual fund corporation created to hold a portfolio of publicly listed common shares of selected Canadian chartered banks. Capital Shares and Preferred Shares of Allbanc Split Corp. II are listed for trading on The Toronto Stock Exchange under the symbols ALB and ALB.PR.B respectively.
SOURCE Allbanc Split Corp. II
For further information: Investor Relations, Allbanc Split Corp. II, Telephone: (416) 863-5930, E-mail: [email protected], Web site: www.scotiamanagedcompanies.com