Canadian Banc Recovery Corp. Announces Filing of Management Information Circular for Special Meeting
October 12 2011 - 10:57AM
Marketwired
The Board of Directors of Canadian Banc Recovery Corp. (the
"Company") today announced that it has filed a Management
Information Circular for the special meeting of the holders of the
Company's Preferred Shares and Class A Shares to be held at 10:00
a.m. (Eastern standard time) on Thursday, November 3, 2011. The
main purpose of the meeting is to consider a special resolution to
extend the mandatory termination date for the Company from December
1, 2012 to December 1, 2018. Shareholders of record at the close of
business on September 29, 2011 will be provided with the Notice of
meeting and Management Information Circular in respect of the
meeting and will be entitled to vote at the meeting.
The reasons for the term extension proposal are as follows:
-- Shareholders will have the opportunity to continue to participate in a
fund with attractive floating rate monthly distributions. The current
yield of the Preferred shares is 4.95% based on the market price at
September 26, 2011. Preferred shareholders have received 74 consecutive
monthly dividends for a total of $3.52 per Preferred share since
inception in July 2005. The current yield of the Class A shares is 8.2%
based on the market price at September 26, 2011. Class A shareholders
have received a total of $5.62 per Class A share since inception.
-- Class A Shareholders could benefit from any market appreciation or
dividend increases in the 6 Canadian chartered banks (held in the
portfolio) over the extended time period.
-- Preferred Shareholders and Class A Shareholders could receive increased
distributions should the Canadian prime rate increase sufficiently over
the extended term.
-- Long term investors may benefit from an expanded time horizon.
-- A longer investment horizon allows the Manager to remain focused on its
investment strategy without prematurely beginning the process of winding
down investments.
If the extension is approved, Class A Shareholders and Preferred
Shareholders will be provided with a Special Retraction right as
described in the Management Information Circular which is designed
to provide Shareholders with an opportunity to retract their
Shares, if they so wish, and receive a retraction price that is
calculated in the same way that such price would be calculated if
the Company were to terminate on December 1, 2012 as originally
contemplated.
The special resolution also allows the Board of Directors to
provide subsequent 5 year extension terms while continuing to
provide all shareholders with the same retraction right entitlement
at each extension date as they would have had if the term of the
Company were not to be so extended. The ability to extend the
termination date will save the Company all of the associated costs
of holding a special shareholders meeting while still retaining
each shareholders right to retract their shares on the same basis
as if a termination date had occurred. The resolution provides the
Board with the ability to modify the dividend formula for ensuing
extension terms beyond December 1, 2018 if necessary, to reflect
market conditions existing at that time.
The Board of Directors of the Company has determined that the
special resolution is in the best interests of the Company and its
shareholders. Accordingly, the Board of Directors recommends that
shareholders vote FOR the special resolution. The Independent
Review Committee of the Company has also unanimously determined
that the calling and holding of the special meeting to consider the
matters described in the Circular, on terms set forth in the
Circular, achieves a fair and reasonable result for
shareholders.
The Notice of Special Meeting of Shareholders and the Management
Information Circular is available on SEDAR and the Company's
website at www.primerateplus.com.
Contacts: Canadian Banc Recovery Corp. Investor Relations
416-304-4443 or Toll free at 1-877-4-Quadra
(1-877-478-2372)www.primerateplus.com
Canadian Banc (TSX:BK)
Historical Stock Chart
From May 2024 to Jun 2024
Canadian Banc (TSX:BK)
Historical Stock Chart
From Jun 2023 to Jun 2024