MONTREAL, April 23, 2014 /CNW Telbec/ - Global Diversified Investment Grade Income Trust ("Global DIGIT") wishes to remind its unitholders that Global DIGIT will redeem its outstanding units on September 9, 2014 (the "Termination Date"). This means that:
- Unitholders of record on the Termination Date will receive their pro rata share of the net assets of Global DIGIT, subject to a hold back of approximately $0.20 per unit to cover all expenses to be incurred by Global DIGIT up to its dissolution. Any remaining amount will be distributed as an adjustment to the redemption price.
- 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 capital.
- Prior to the Termination Date, unitholders will continue to enjoy quarterly redemption privileges up to May 31, 2014.
- Prior to the Termination Date, unitholders will continue to receive monthly distributions up to July 31, 2014.
Unitholders are encouraged to consult with their tax advisors regarding Global DIGIT's termination to determine how they are going to be affected by the redemption price at the 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.
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, http://info.fbn.ca/trusts