TORONTO, April 5, 2013 /CNW/ - Utility Corp. (the "Company") announced today that the Shareholders of Utility Corp. have approved an extension of the Company that involves: (i) the extension of the originally scheduled redemption date to May 22, 2018; (ii) a one time adjustment to the portfolio of the Company; and (iii) the ability to implement a moderate leverage strategy with a target borrowing of 15% of the total asset value of the Company's portfolio. The extension will become effective provided holders of at least 1,200,000 Class C shares (the "Shares") retain their Shares and do not exercise the special retraction right.
As part of the extension, if completed, a one-time adjustment of the Company's portfolio will be undertaken in May 2013. The adjustment will rebalance the portfolio to comprise of securities of 19 selected issuers in the electrical, power and pipeline utilities and telecommunications issuers held initially on an approximately equally weighted basis. This adjustment will be made in order to increase the portfolio's diversification, reduce its single name exposure, and is currently expected to increase the portfolio's gross dividend yield.
Class C Shareholders not wishing to continue their investment in the Company after May 21, 2013 must give notice that they wish to exercise the special retraction right with respect to their Shares on or prior to April 26, 2013. Class C Shareholders who wish to retract their Shares should contact their broker or other intermediary, as they may set a deadline earlier than April 26, 2013.
Class C Shareholders are entitled to receive dividends as declared by the Board of Directors of Utility Corp. It is the Company's policy to declare and pay equal monthly dividends on the outstanding Class C Shares based on revenue received less expenses.
Utility Corp. is a mutual fund corporation whose investment portfolio consists of publicly listed securities of selected Canadian utility and telecommunication issuers. The Class C Shares of Utility Corp. are listed for trading on the Toronto Stock Exchange under the symbol UTC.C.
SOURCE: Utility Corp.
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