Canadian Banc Corp. Extends Termination Date and Increases Preferred Share Rate
September 26 2018 - 4:00PM
Canadian Banc Corp. (the “Company’) is pleased to announce it has
extended the termination date of the Company a further five year
period from December 1, 2018 to December 1, 2023.
In connection with the extension, the Company
will also amend the dividend entitlement of the BK.PR.A Preferred
Shares (“Preferred Shares”) effective December 1, 2018, to pay a
cumulative preferential floating rate monthly dividend at an
annual rate equivalent to the prevailing Canadian Prime Rate
plus 1.5% (previously 0.75%). The minimum rate per annum of which
dividends will be paid on the Preferred Shares remains at 5% and
the maximum rate will increase from 7% to 8%. Assuming no
change in the current Prime Rate of 3.7%, the dividends paid on the
Preferred Shares would increase from the current rate of 5.0% to
5.2% per annum on their $10 redemption value. The BK Class A Shares
(“Class A Shares”) will continue to receive their targeted monthly
payments currently set at an annualized rate of 10%, based on the
volume weighted average market price of the Class A Shares over the
last 3 trading days of the preceding month.
In connection with the term extension, the
Company will offer a Special Retraction Right which will allow
existing shareholders to tender one or both classes of Shares and
receive a retraction price based on the November 30, 2018 net asset
value per unit.
Since inception of the Company, the Class A
Shares have received a total of $14.05 per share and the Preferred
Shares have received a total of $6.98 per share, for a combined
total of $21.03.
The Company invests in a portfolio of six
publicly traded Canadian Banks as follows:
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Bank of Montreal |
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Canadian Imperial Bank
of Commerce |
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Royal Bank of
Canada |
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The Bank of Nova
Scotia |
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National Bank of
Canada |
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The Toronto-Dominion
Bank |
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Commissions, trailing commissions, management
fees and expenses all may be associated with mutual fund
investments. Investors should read the prospectus before investing.
Mutual funds are not guaranteed, their values change frequently and
past performance may not be repeated. Please read the Company’s
publically filed documents which are available at
www.sedar.com.
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Investor Relations:
1-877-478-2372 |
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Local:
416-304-4443 |
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www.canadianbanc.com |
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info@quadravest.com |
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