TDb Split Corp.-Portfolio Update
June 19 2009 - 11:05AM
Marketwired
TDb Split Corp. ("the Company") was created to provide exposure to
the common shares of Toronto Dominion Bank ("TD Bank") through two
classes of securities, the Priority Equity Shares and the Class A
Shares (a "Unit"). Since inception of the Company on August 7, 2007
(approx. 21 months ago) the price of TD Bank has declined 17% from
$69.03 to $57.23 on June 18, 2009. TD Bank descended to a closing
low of $32.80 on February 23, 2009.
This sharp decline in TD Bank has resulted in the Company's net
asset value being reduced significantly and as mentioned in
previous updates, has required the Company to implement the
Priority Equity Portfolio Protection Plan (the "Plan") in
accordance with the prospectus. As a result of implementing the
Plan, the Company has been required to sell a significant amount of
the TD Bank common shares held in the Portfolio and acquire fixed
income securities.
The Company's total net asset value is approximately $11.57 per
unit as at June 18, 2009, consisting of less than 65% common shares
of TD Bank. The reduced exposure to TD Bank will limit the future
impact of price movements of TD Bank shares on the net asset value
of the Company and lower the ability of the Company to generate
income from dividends and its covered call option writing
program.
The significant price decline of TD Bank and the resultant
implementation of the Priority Equity Protection Plan have made it
extremely difficult to achieve the original stated objectives for
both classes of shares. The Company established a normal course
issuer's bid which allows the Company to re-purchase units in the
market when trading prices are at a discount to the net asset
value.
The portfolio is continually rebalanced and adjusted based on
market conditions to provide both security for Priority Equity
shareholders and upside potential for Class A shareholders. The
Company may buy or sell additional shares of TD Bank, the Permitted
Repayment Securities, and/or option positions based on market
conditions and provided that the Company remains in compliance with
the Priority Equity Portfolio Protection Plan.
Contacts: TDb Split Corp. Investor Relations 416-304-4443 or
Toll Free at 1-877-4-Quadra (1-877-478-2372) www.TDbSplit.com
TDb Split (TSX:XTD.PR.A)
Historical Stock Chart
From Jun 2024 to Jul 2024
TDb Split (TSX:XTD.PR.A)
Historical Stock Chart
From Jul 2023 to Jul 2024