/NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA./
TORONTO, Oct. 28, 2016 /CNW/ - First Asset Investment Management Inc. (the "Manager"), the manager of Utility Split Trust (the "Fund") (TSX: UST.UN and UST.PR.B), announces that, as contemplated by the Fund's declaration of trust, the Fund is scheduled to terminate on January 3, 2017 (the "Termination Date").
Unitholders will not be required to take any action in connection with the termination of the Fund.
In connection with the termination:
- the Class B Preferred Securities of the Fund (TSX: UST.PR.B) outstanding on the Termination Date will mature on such date, and the Fund will repay the original subscription price of $10 for each Class B Preferred Security together with any accrued and unpaid interest thereon payable on the Termination Date;
- any Capital Units of the Fund (TSX: UST.UN) outstanding on the Termination Date will be redeemed by the Fund for an amount, if any, equal to a pro rata share of the net assets of the Fund remaining after payment or accrual of all debts, expenses and liabilities (including any senior indebtedness and the aggregate repayment price paid in respect of the Class B Preferred Securities) and liquidation expenses of the Fund;
- the last regular monthly distribution in respect of the Capital Units, if any, will be in respect of the month ending November 30, 2016. The Fund will not pay a regular monthly distribution in December 2016, but may pay a special distribution if required for tax purposes;
- the Manager will request the Toronto Stock Exchange (the "TSX") to de-list the Class B Preferred Securities and the Capital Units from the TSX as at the close of business on December 30, 2016; and
- payment of the termination proceeds will be made on or about January 6, 2017 to the beneficial holders of such units through CDS Clearing and Depository Services Inc.
If the Manager determines or is advised by the investment sub-advisor that it will not be possible to convert all of the Fund's property into cash before the Fund's scheduled termination, the Manager may, upon 30 days' prior notice to Unitholders, extend the date for termination of the Fund to April 1, 2017.
If the Manager determines that it would be unable to convert all of the Fund's property to cash on or before the Termination Date and the Manager determines that it would be in the best interests of Unitholders, the Fund's trustee shall, on the direction of the Manager and upon at least 10 days prior notice to Unitholders, extend the Termination Date to no later than June 30, 2017. Any such extension will not, however, shall not delay the repayment of the Preferred Securities.
First Asset – Smart SolutionsTM
First Asset, a CI Financial Company, is a Canadian investment firm delivering a comprehensive suite of smart ETF solutions. Rooted in strong fundamentals, First Asset's smart solutions strive to deliver better risk-adjusted returns than the broad market, while helping investors achieve their personal financial goals.
TMFirst Asset and its logo are trademarks of First Asset Capital Corp., a wholly-owned subsidiary of CI Financial Corp. which is listed on the Toronto Stock Exchange under the symbol "CIX". ®CI FINANCIAL is a registered trademark of CI Investments Inc., used under license. This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions "seeks", "expects", "believes", "anticipates", "estimates", "will", "target" and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of First Asset regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. First Asset believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, First Asset can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. First Asset undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.
SOURCE First Asset
For further information: please call Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com