Big Banc Split Corp T.BNK

Alternate Symbol(s): T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.

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Big Banc Split Corp

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Comment by rehsifylfon Oct 08, 2008 12:00pm

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Post# 15513485

RE: NCIB

The action of a company buying back its own outstanding shares from the markets so it can cancel them. The amount the company may repurchase is subject to regulatory approval. Instead of holding shares, which fluctuate day to day in the market, a company will cancel the shares to add to its core value.

For BNK - would do two things. One - get there fall in line with other energy producers (not 2-3X which it is now), Two - they retire the shares, wait for improved conditions (looks like it will be 2010) and then re-issue at a higher amount to raise capital.