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Premium Income Corp T.PIC.A

Alternate Symbol(s):  T.PIC.PR.A

Premium Income Corporation is a split share company. The Fund’s investment objectives are to provide Preferred shareholders with cumulative preferential quarterly cash distributions of $0.215625 per share, representing an annual yield of 5.75% on the original issue price of the Preferred shares; to provide Class A shareholders with quarterly cash distributions of $0.20319 per share, and to return the original issue price to holders of both preferred share and Class A shares upon windup of the Fund. It invests at least 75 % of its net asset value (NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the Banks) and also invests up to 25 % of its NAV in common shares of National Bank of Canada. In addition, the Fund may purchase public investment funds, including exchange-traded funds and other Mulvihill Funds. Its investment manager is Mulvihill Capital Management Inc.


TSX:PIC.A - Post by User

Post by Donwaanon Oct 30, 2024 12:59pm
194 Views
Post# 36289025

Reply from Mulvihill

Reply from MulvihillWhile I cannot provide specific numbers on the redemptions that came as a result of the Special Retraction right for the November 1, 2024 valuation I can say that the consolidation ratio was set in anticipation of an overnight issue of preferred shares in mind. The preferred share issuance partly offsets the redemption. This reduces the consolidation of the A class shares necessary to balance the outstandings of the two classes. 100 shares now will become about 67 shares as of November 12th. The NAV of the A class will have a corresponding increase of about 1.49 times. The NAV will be restruck for this corporate action but by way of example we can say that the 100 shares of A class at a 4.25 NAV will become around 67 shares with a NAV of about $6.34. I understand that the redemption, consolidation, and new issuance viewed in isolation it may appear unclear. Looked at more wholistically we were able to anticipate the conversion ratio such that it would not need to be adjusted after the overnight issue was done. I hope this provides some context for you in this matter. Regards Jeff Thompson I Portfolio Manager
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