5Banc Split plans to redeem its class B preferred shares on Dec. 15

By Susanna Moon

Chicago, Nov. 16 - 5Banc Split Inc. said it will redeem its class B preferred shares on Dec. 15.

For each preferred, the company will pay the lesser of C$10 and the net asset value per unit determined on Dec. 8.

In order to maintain its leveraged split share structure, the company will create and issue a new series of class C preferreds, to be issued after the redemption of the class B preferreds, according to a company press release.

In other news, the company said it satisfied the final condition required to extend the term of the company for five more years to Dec. 15, 2016 after holders of about 76% of class B capital shares chose to continue their participation in the company.

5Banc Split was established to generate dividend income for holders of the preferreds while providing holders of the capital shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank.

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