Funny choice. I have a hard time explaining this choice, since often the LFE holders have not always been paid. It is as if we were favoring the holders of preferred shares to the detriment of the LFE holders. ???
TORONTO, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Canadian Life Companies Split Corp. (the “Company”) is pleased to announce an increase in the Preferred Share dividend rate for the new six year term effective December 1, 2024. Payments will be made at the greater of 7.00% (previously 6.50%) or Prime plus 2% with a maximum of 9.00% (previously 8.00%) based on the $10.00 repayment value. The new distribution rate represents a potential increase of $0.10 per annum from the previous maximum rate. Preferred shareholders have received a total of $11.82 per share in distributions since inception. The dividend policy for the Class A Shares will remain at the current targeted rate of $0.10 per month, or $1.20 per annum.
As previously announced on March 12, 2024 the Company will extend the termination date a further six year period from December 1, 2024 to December 1, 2030. In relation to the term extension and the Preferred Share rate increase, the Company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 29, 2024 net asset value per unit. Alternatively, shareholders may sell their shares for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.