TORONTO, Aug. 21, 2015 /CNW/ - BNS 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 September 22, 2020, has been met as holders of 89.2% 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 subject to a minimum of 800,000 Capital Shares remain outstanding after giving effect to the special retraction right (the "Special Retraction Right").
Under the Special Retraction Right, 137,506 Capital Shares were tendered to the Company for payment on September 22, 2015. The holders of the remaining 1,138,286 Capital Shares will continue to enjoy the benefits of a leveraged participation in the capital appreciation of the Company's portfolio of common shares of The Bank of Nova Scotia 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 September 22, 2015 in accordance with the redemption provisions at a price per share equal to the lesser of $18.85 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.
BNS Split Corp. II is a mutual fund corporation created to hold a portfolio of common shares of The Bank of Nova Scotia. Capital Shares and Preferred Shares of BNS Split Corp. II are listed for trading on The Toronto Stock Exchange under the symbols BSC and BSC.PR.B respectively.
SOURCE BNS Split Corp. II
For further information: please contact investor relations: BNS Split Corp. II, (416) 863-7301, E-mail: [email protected], Web site: www.scotiamanagedcompanies.com