TORONTO, April 19 /CNW/ - High Income Principal and Yield Securities
Corporation ("HIPAYS") - today announced that it is making an offer to
repurchase for cancellation up to 300,000 of its preferred shares (TSX:
"PAY.PR.A"), in a range of $25.50 to $25.90 per preferred share, through a
modified Dutch auction issuer bid. Assuming HIPAYS purchases 300,000 preferred
shares in the offer at the maximum Purchase Price of $25.90 per preferred
share, $7,770,000 will be required to purchase such preferred shares.
The Dutch auction tender procedure allows shareholders to select the
price, within a specified range, at which each shareholder is willing to sell
all or a portion of the preferred shares he or she owns. Upon expiration of
the offer, HIPAYS will select the lowest purchase price that will allow it to
buy 300,000 preferred shares (the "Purchase Price"). Shares tendered at or
below the Purchase Price will be purchased at the Purchase Price subject to
pro-ration to the extent that the aggregate number of preferred shares does
not exceed 300,000.
On July 31, 2008 (the "Termination Date") the preferred shares will be
redeemed for $25.00 and the remaining 15 distributions from the expiry of the
Offer to the Termination Date will amount to $1.719. Accordingly, the yield to
maturity of a preferred share at $25.50 to the Termination Date is 3.86% and
the yield to maturity of a preferred share at $25.90 to the Termination Date
An issuer bid circular containing full details of the offer and
procedures for tendering preferred shares is expected to be mailed to
shareholders on or about April 20, 2007. The offer, which is subject to
regulatory approval, will expire at 5:00 p.m. (Toronto time) on or about May
30, 2007, unless extended by HIPAYS.
Since October 2006, HIPAYS has, pursuant to its previously announced
normal course issuer bid, purchased for cancellation 148,400 preferred shares
at an average purchase price of $26.07. HIPAYS will cease purchasing preferred
shares pursuant to its normal course issuer bid until at least 20 business
days after the expiration or termination of the offer.
HIPAYS invests in a diversified portfolio consisting principally of
preferred shares issued by corporations whose shares are included in the S&P
500 Index and the S&P/TSX Composite Index, income funds and debt securities.
Lawrence Asset Management Inc. is both Manager and Investment Manager of
For further information:
For further information: Investor Relations, Catherine Stretch, (416)
362-6283, firstname.lastname@example.org, PAY. PAY.PR.A.