Split Yield sets redemption price for preferreds; settlement Feb. 16

By Susanna Moon

Chicago, Feb. 3 - Split Yield Corp. said the redemption price for its class I preferred shares will be C$18.6989 per preferred. No payment will be made for the company's class II preferred shares or its capital shares.

The final redemption price is based on the final net asset value per unit of C$18.6989 as of Feb. 1, according to a company press release.

The payment will be made on Feb. 16.

Split Yield said on Dec. 6 that it would redeem of all of its class I and II preferred shares and all of its capital shares on Feb. 1.

As previously noted, the redemption price for the class I preferred shares was to be the lesser of C$20.00 and the net assets per unit for the company on the redemption date.

The redemption price for the class II preferred shares was to be the difference, if any, between the net assets per unit of the company and C$20.00. A maximum value was set at C$15.00 per share. If the net asset value per unit was less than C$20.00 on the redemption date, there was to be no payment on the class II preferred shares.

No payment was to be made on the capital shares unless the unit value on the redemption date is more than C$35.00.

As of Nov. 30, the value per unit was C$17.74.

The redemption is required in the company's amended articles of incorporation, a previous release said.

Split Yield is a mutual fund company managed by Quadravest Capital Management Inc. in Toronto.

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